As there have been a few new changes to the Livestock Risk Protection Program (LRP), Farm Director KC Sheperd is talking with the Vice President of Operations at Farm Data Services and Oklahoma cattle producer Clay Burtrum about an update.
Burtrum explained that the new changes to LRP allow producers to ensure unborn cattle and expand the limits of the Chicago Mercantile Exchange. He emphasized the importance of LRP as a form of insurance to protect against unpredictable market fluctuations.
“One of the big changes is that billing is not due until after the end of the insurance period,” Burtrum said. “You can ensure unborn cattle. Many of us will be pregnancy-checking our cattle later this fall and you can ensure those calves on the cow. You can ensure cattle from 100 pounds to 599 pounds under Weight 1. Weight 2 is 599 pounds to 1,000 pounds. This is just so important when you look at the cost of cattle we are dealing with right now.”
Regarding expanded limits of the Chicago Mercantile Exchange, Burtrum said when looking at feeder cattle, the current limit was $8.25. The newly expanded limits for one-day trading are now $13.75 per cwt.
“That is a big limit change when we talk about the expanded limits of the Chicago Mercantile,” Burtrum said. “That is why LPR is important when you look at those expanded limits and how we manage our day-to-day business.”
Using the example of the recent outbreak of Highly Pathogenic Avian Influenza and its impacts on the cattle markets, Burtrum said utilizing LRP is a great way to stay protected in case of unforeseen events.
“We have a lot of variables we can work with and make these prices work for you,” Burtrum said.
For those looking to change their livestock agents for the new crop year, Burtrum said the deadline is June 30th. To reach Clay Burtrum at Farm Data Services, call 405-747-9865 or through the Apache Farmers Coop in Apache, Oklahoma.
Visit https://www.farmdataservices.com/ for more information!
