January 2026 NEBRASKA CATTLEMAN 83 NCIG). Once approved, you can purchase Specific Coverage Endorsements (SCEs) over the year as you need them. Choose your coverage. On any business day that LRP is offered, you select an insurance period that lines up with when you expect to market your cattle, a coverage price from the available levels and the number of head and target weight you want to insure. Pay the premium. Liability is the number of head multiplied by the target weight and the coverage price. That liability is multiplied by the premium rate to determine the total premium for the endorsement. USDA then applies a subsidy based on your coverage level. Your cost is the total premium minus the subsidy. Wait for the coverage end date. LRP settles only on the end date of your endorsement. RMA publishes the actual ending value (based on the relevant CME index/price series). Receive an indemnity if prices fall. If the national index price is lower than your coverage price on the end date, the policy pays the difference based on your insured weight. If the index comes in higher, there is no indemnity, but you keep the benefit of stronger cash prices. BRINGING THE PIECES TOGETHER No two operations are the same. The breed makeup, marketing windows, weight targets, forage base and cash needs of each operation all influence which LRP endorsements make sense and when to purchase them. I see the strongest results when coverage is matched to a clear plan instead of being used only after the market begins to move. If you would like a second look at your numbers or a standing game plan for cow-calf, backgrounding or finishing over the next six to 12 months, I am always available to help at joe.roberts@ fnicgroup.com or (402) 861-7000. I can walk you through current coverage prices and rates, subsidy details, timing choices and ways to coordinate LRP with your existing cash and futures CONTINUED ON PAGE 86
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