Cow-calf producers now have a stronger way to financially protect their calves—from before they’re born until they reach heavier market weights. The Risk Management Agency (RMA) recently announced an update to unborn calf protection under Livestock Risk Protection (LRP), increasing the maximum coverage weight from 599 pounds to 900 pounds beginning July of 2026.
On paper, the change may seem small, but Landon Nelson, vice president of livestock insurance with AgCountry Farm Credit Services (AgCountry), says it has meaningful implications for producers trying to protect today’s historically high prices.
“For cow‑calf producers looking to forward‑protect these high prices all the way through their marketing date, this finally allows them to do that,” Nelson says.
Previously, producers with spring‑born calves often faced a gap in protection. A producer might insure a 500‑pound calf into late summer but not sell a 700‑ or 800‑pound animal until winter.
“At that point, the choices were to use LRP twice—which can feel expensive—or leave cattle unprotected for a period of time,” Nelson explains. “It was really an administrative nuisance.”
Nelson sees the expanded unborn calf coverage as especially valuable in today’s high‑price environment.
“The goal for these producers is to achieve the highest value they can for their calves,” he says.
Fed cattle LRP: Higher coverage prices coming soon
Updates to LRP also impact fed cattle producers, with higher coverage prices available soon to better align with the exceptionally strong fed cattle market.
This change reflects the sharply higher cash prices fed cattle producers have experienced and allows LRP coverage to more accurately reflect today’s market realities.
Expanded flexibility for feedlots and hog producers
For hog producers and cattle feedlots, another key update allows LRP and Livestock Gross Margin (LGM) to be used concurrently. Previously, producers could not hold LRP and LGM endorsements expiring in the same month.
“This creates a nice suite for producers who want to leverage insurance more intentionally,” Nelson says.
He explains that a producer might use LGM early—before cattle are even sourced—to secure paper margins, then layer in LRP as price opportunities emerge.
“Now we can have a base of protection with LGM, then use LRP opportunistically as the market gives us chances to lock in margins,” Nelson says.
That flexibility allows for a more coordinated risk‑management plan.
“We can establish a game plan—maybe 40% of production protected with insurance—and if a producer wants to manage additional risk through a brokerage account, they still can,” Nelson notes. “It lets producers be intentional in ways they haven’t been able to over the past five years.”
Protecting historically high cattle values
Nelson points out that today’s cattle producers are operating in a price environment unlike anything previous generations have experienced.
“Historically, other generations haven’t seen a price explosion like this,” he says. “When you put it in perspective, cattle values today are basically equivalent to $9 corn.”
With record‑level equity built into operations, Nelson says risk management plays a critical role in preserving those gains.
“Producers have built a significant asset inside their operations,” he says. “Now there are practical, simple, and repeatable tools available to help retain that equity moving forward.”
