EC04-834 Hedging and Basis Considerations for Fed Cattle Livestock Risk Protection Insurance

Livestock Risk Protection (LRP) Insurance for fed cattle is a price-risk management tool initially offered in June 2003 to fed cattle producers in Nebraska, Iowa, and Illinois. LRP indemnifies against declines in cash fed cattle sales prices, as measured by a regional weekly weighted average cash slaughter steer price. This 2004 extension circular examines historical LRP basis and demonstrates its use in hedging with LRP