Cameron Lux Discusses LRP Strategies, PRF Insurance, and Risk Management Tools for 2026: Following a volatile 2025 in the agricultural markets, producers are looking for stability heading into the new year. In a recent interview, Farm Director KC Sheperd spoke with Cameron Lux about critical risk management tools for cattle and grain producers, including Livestock Risk Protection (LRP) and changes to crop insurance subsidies.
The “Heyday” of LRP Lux noted that while multi-peril crop insurance has long protected grain farmers, cattle producers have often felt “left high and dry.” That is changing with the rising popularity of Livestock Risk Protection (LRP), a tool designed to set a price floor for cattle operations.
“If there’s a state that’s got cattle in it, there’s LRP for it,” Lux said. “It’s kind of in the heydays of LRP right now.”
Lux explained that while the cattle market has seen a consistent climb recently, LRP remains vital for protecting against unpredictable dips. He recalled that a few years ago, policies triggered frequently due to market drops, proving the value of locking in coverage. Now, with better subsidies, he argues it is a necessary tool to stay competitive.
“If they’re not [using it], all their neighbors are and they need to take their little piece of the pie too,” Lux added.
Getting Started is Simple For producers intimidated by the process, Lux emphasized that the barrier to entry is low. The first step is simply filling out an application, which costs nothing and ties no premium to the producer until they choose to lock in a specific coverage endorsement (SCE).
“Just because you have the application filled out doesn’t mean you have any coverage… All it is saying is that, ‘Hey, I am interested in LRP,'” Lux explained. However, he warned that once a producer is ready to buy, the process is time-sensitive and typically requires decisions made between market close and the following morning.
Updates to Multi-Peril and PRF On the grain side, Lux highlighted significant changes to multi-peril crop insurance, specifically regarding Enhanced Coverage Option (ECO) and Supplemental Coverage Option (SCO). These options have been “re-subsidized” up to roughly 80%, making them a more attractive way to cover risk from the top down.
Lux also touched on Pasture, Rangeland, and Forage (PRF) insurance, describing it as a “set it and forget it” policy that triggers based on a lack of rainfall. However, he cautioned that producers must trust the historical data before signing up.
“I’ve had to turn people away where I just said… ‘It might not pan out the way you think it’s going to,'” Lux admitted. “I choose to, I guess, trust the data.”
Advice for 2026: Know Your Options Lux’s biggest advice for producers in 2026 is to educate themselves on the private products and policy options available—and to ensure they have an agent willing to put in the work.
“Find an agent you trust in your area that is willing to come out, sit down at the kitchen table with you, treat you like a human, and write the coverage that you need for your operation,” Lux concluded.
