Market Report
Greenville Livestock Auction
September 8, 2024
CATTLE CONCEPTS
Total: 908
Feeder: 908 (100.0%)
Replacement: 0 (0.0%)
Trade: Good demand, active trade
Fairview Sale Barn
September 17, 2024
Total: 308
Slaughter: 308 (100.0%)
Notes: Packer Day, Special Feeder Sale Trade: Moderate to good demand, active trade
United Producers
September 17, 2024
Total: 263 Breeding: 69 (26.2%) Slaughter: 152 (57.8%) Feeder: 42 (16.0%)
Comments: -
Illinois Weekly Summary
September 16, 2024
LIVESTOCK RISK PROTECTION
HOW LRP CAN MANAGE RISK FOR YOUR OPERATION
Beyond producing high quality and healthy cattle, the end goal in the beef industry is marketing your product for profit. With ever-fluctuating market prices, there is bound to be some level of risk in beef production, and there are a plethora of strategies and tools to manage that risk –like Livestock Risk Protection (LRP) Insurance.
Everyproducer wants to plan for profitability. But the key to any ‘risk’ situation is having some sort of safety net – or protecting your downside. This is one of the most effective risk management strategies a producer could use on their livestock operation. While there are many tools out there to utilize for risk management, Livestock Risk Protection (LRP) insurance can be a sure way to safety net you and your operation when the market faces a downside.
LRP is in place to protect producers against major market downfalls and price declines, while also allowing producers to benefit from price increases. There is a wide range of flexibility that can be provided to producers: timing of purchase, coverage terms, head covered, target weight and expected value of livestock, and coverage level price. Producers can opt to cover 70% to 100% of the expected ending price and the key to LRP insurance is finding the coverage level that best suits your operation. Selecting a policy period that best reflects when your cattle are going to be marketed, along with determining the expected end value of your livestock, are two of the variables that go into determining adequate coverage options. USDA Risk Management Agency offers subsidies between 35%-55% based on the percentage of coverage.
These factors are what producers should discuss with their agent to determine which level of coverage and risk they wish to protect. University of Kentucky Extension livestock specialist Dr. Kenny Burdine explains, “a simple way to look at LRP insurance is just to compare the expected ending value to a selected coverage level. If the expected ending value is $250 per cwt, that means [producers] must self-insure the first $8 per cwt drop in the market if purchasing a $242 coverage level. One might compare it to an $8 deductible. And with respect to heifer coverage, producers need to understand that the movement in the index is slightly truncated by the 90% adjustment factor.”
If you are considering using an LRP insurance plan, contact an insurance agent or risk management expert in your field to figure out which options and coverage levels are best suited for your cattle within your marketing plan for your operation.
Beef Quality Assurance Trainings
BQA Meetings are free to current IBA Members. Non-members are welcome to attend for a $20 registration fee. Dates and locations below:
Monday, December 2, 2024 | 6 p.m. Greenville Livestock Auction | Greenville
Tuesday, December 3, 2024 | 6 p.m. Pinckneyville Community Center | Pinckneyville
Tuesday, December 3, 2024 | 6 p.m. Stephenson County Farm Bureau | Freeport
Wednesday, December 4, 2024 | 6 p.m. Fairview Sale Barn | Fairview
Thursday, December 5, 2024 | 6 p.m.
The BlackRidge | Cambridge
Thursday, December 5, 2024 | 6 p.m. Reel Livestock Center | Congerville
Monday, December 9, 2024 | 6 p.m. LaSalle County Farm Bureau | Ottawa
Monday, December 9, 2024 | 6 p.m.
Teutopolis Banquet Hall (Knights of Columbus) | Teutopolis
Tuesday, December 10, 2024 | 6 p.m. Illinois Beef Association | Springfield
Tuesday, December 10, 2024 | 6 p.m. Carthage Livestock Auction | Carthage
Wednesday, December 11, 2024 | 6 p.m. Elizabeth Community Center | Elizabeth