The Livestock Risk Protection Plan (LRP) provides protection against price declines for feeder cattle, fed cattle, and swine. A Southern Ag Today article from August 2025 (USDA’s Livestock Risk Protection Program Use Keeps Increasing) outlined LRP participation among cattle producers. The previous article highlighted increased LRP participation following USDA changes to LRP and improvement in market prices for feeder and live cattle. In terms of number of head of cattle, LRP participation increased 25% from 2023 to 2024 and 21% from 2024 to 2025.
LRP policies run on a fiscal year starting July 1 and ending June 30. With less than 3 months to go in the fiscal year 2026, this article serves as an update on LRP participation considering the expectation of sustained (and rising) cattle prices in 2026. The projected strong price forecast for cattle is driven by historically low cattle inventories and the anticipation of a slow herd rebuilding process, reduced supply of fed cattle for slaughter, and sustained beef demand.
The expectation of sustained or higher cattle prices begs the question: do producers continue to utilize (and pay premiums for) LRP to protect against price declines when a price decline seems unlikely? So far in FY2026, there are 5.93 million head covered by LRP policies compared to 6.03 million at this time in FY2025 – 1.65% fewer head. It seems cattle producers are on track to utilize LRP for roughly the same number of head as last year, showing producers are willing to spend money on an LRP policy to reduce downside risk and establish a price floor despite the well-supported expectation 2026 will see sustained, and even higher, cattle prices.
Stewart, Natalie. “2026 LRP Participation Given the Expectation of Sustained Cattle Prices.” Southern Ag Today 6(16.4). April 16, 2026. Permalink
