Fed Cattle Insurance: Is it worth it?

Price insurance for fed cattle has been available in various forms and offered in multiple states for twenty years. Livestock Risk Protection (LRP) insurance is currently available for fed and feeder cattle. Historically there was little incentive to use LRP compared to buying put options on live cattle. In contrast, demand for LRP for feeder cattle has been more robust through time as it is more suited for covering calves and lot sizes that do not always match the contract specifications of a feeder cattle futures…