Why Montana Cattle Producers Should Consider LRP Insurance Right Now

Feeder cattle prices in 2025 and 2026 have reached historically high levels. That’s great news for producers — but high prices also mean more to lose if the market turns. With Mexican cattle border closures, volatile feed costs, and uncertain demand signals, protecting those elevated price levels with Livestock Risk Protection (LRP) insurance has never made more sense.

What Makes LRP So Valuable Right Now

LRP is a federally subsidized price insurance program. The government picks up a significant portion of your premium cost — often 40-55% — which means you’re getting meaningful price protection at a fraction of what it would cost unsubsidized. When expected end values are high (like they are now), the cost of coverage relative to the value of protection is extremely favorable.

Understanding the Mexican Border Situation

The closure of the U.S.-Mexico cattle border in November 2024 removed roughly 1.18 million head of annual feeder cattle imports from the supply pipeline. While that has supported elevated prices in the short term, a phased reopening of the border could bring significant new supply back into the market as early as fall 2026. Producers who lock in today’s high prices with LRP coverage are insulated from that potential downward price pressure.

How LRP Works

You choose an endorsement length (13 to 52 weeks), a coverage level (75% to 100% of expected end value), and a target end weight. The program then establishes a coverage price based on CME feeder cattle futures. If the actual ending value falls below your coverage price at the end of the endorsement, you receive an indemnity payment for the difference.

Coverage Available for All Feeder Cattle Types

• Light Steers (under 600 lbs) — Type 8090

• Heavy Steers (600 lbs and over) — Type 8100

• Light Heifers (under 600 lbs) — Type 8110

• Heavy Heifers (600 lbs and over) — Type 8120

• Unborn Bulls & Heifers — Type 8170

Act Fast — Coverage Windows Close Daily

LRP coverage windows open and close each business day. Once a window closes, you cannot purchase coverage at that day’s prices. Our daily LRP quotes are posted on this site every morning so you can see current rates. But don’t wait — call or email us to get enrolled and ready to act when the time is right for your operation.

📞 Hobson: (406) 366-1287 | 97 Central Ave, Hobson MT 59452

📞 Stanford: (406) 366-1287 | 79 Central Ave, Stanford MT 59479

✉️ tater@ericksons925.com