Livestock Price Insurance (LPI) for Calf sales opened February 2. This easy-to-use risk management tool is offered in the spring and covers the price risk cow-calf producers face when selling calves in the market. Producers can tailor coverage to their operation by purchasing price insurance for anticipated calf sales.
Following last spring’s pandemic-related uncertainty, market volatility has stabilized and premiums have returned to more normal levels. Last year, market uncertainty, compounded by delays in the slaughter industry driven by COVID-19 related slowdowns, closures and changes in consumer and food service demand, drove premium rates to unprecedented highs in early spring before they stabilized in May and June.
LPI – Calf participants received $6.039 million in indemnities in 2020, demonstrating how price insurance helps protect producers their investment.