Livestock Insurance

Whether on the dairy or on rangeland, your assets need protection. AgWest offers specialized insurance products that give you peace of mind when the unexpected happens.

Dairy Revenue Protection (DRP) 

Protect your dairy with DRP insurance.

Available for purchase most business days (with a completed application on file). If you currently have an application on file with another insurance provider and want to work with us, June 30 is the annual deadline for making a provider change.

DRP protects against declines in quarterly revenue from milk sales. Coverage is based on futures prices for milk and dairy commodities. Producers select the quantity of milk production to cover, as well as the quarter they’d like to insure. Coverage levels are available to insure 80-95% of your expected quarterly revenue. 

Causes of loss 

DRP protects against price differences (determined by each coverage type). It does not insure against dairy cattle deaths, loss or destruction of dairy cattle, or other unnamed losses.

What are my DRP pricing options? 

• Class Pricing Option uses a combination of Class III and Class IV milk prices as a basis for determining coverage and indemnities. 
• Component Pricing Option uses the component milk prices for butterfat, protein, and other solids, or nonfat solids, as a basis for determining coverage and indemnities. Under this option you select the butterfat test and protein test percentage to establish in insured milk prices. 

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Livestock Gross Margin (LGM-Dairy) 

Protect your projected margins for milk production.

LGM-Dairy is available for purchase every Thursday as soon as coverage prices and rates are published, generally by 2:30 PT. A coverage endorsement must be signed and submitted to RMA before 7 a.m. PT the following day. Coverage endorsement submissions include a target marketing report for milk and corn and soybean meal equivalents. Default values for corn and soybean meal equivalents may be utilized. Premiums are due after the coverage period ends.

LGM-Dairy helps you protect projected margins for milk production from dairy operations (projected milk revenue minus projected feed costs). LGM is federally subsidized (when more than two months of coverage are purchased) and subsidy amounts range from 18%-50% of the total premium due.

Coverage details 

• Premiums are due 30 days after the last month of the policy period. 
• Producers must market a minimum of 75% of their target milk marketings. 
• Coverage options begin the second month of the insurance period and an insurance period runs for 11 months. This means if coverage is purchased in January, the first month of available coverage is March and the last available month would be December.

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Download Risk Management DRP-LGM Product Details 

Livestock Risk Protection (LRP)

Protect fed and feeder cattle with LRP. 

Available for purchase most business days, with prices released at approximately 1:45 p.m. PT. Premiums are due at the end of the active endorsement period. 

Livestock Risk Protection insures against a decline in prices on fed cattle and feeder cattle, including unborn calves, using current futures prices as set by the Chicago Mercantile Exchange (CME). This allows producers to set a price floor and mitigate risk due to national marketplace volatility. Swine may also be insured using this program. 

Endorsement periods and coverage

• Endorsement periods are available in weekly increments from 13, 17, 21, 26, 30, 34, 39, 43, 47 or 52 weeks for cattle, with coverage options ranging from 70% to 100% of daily published ending value derived from CME futures, not local markets.  
• A maximum of 12,000 head of cattle can be insured under one endorsement, with a 25,000 head cap for the crop year per commodity.  
• Feeder and Fed cattle are treated as separate commodities, allowing for up to 25,000 head for each category.  

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Download Risk Management-LRP Product Details