Feeder Cattle — Steers, Weight 2 (600–1,000 lbs)
Same price floor, two ways to cover it
Click a coverage level in the board above and it loads here automatically — the coverage price becomes the shared strike, with its real LRP premium beside the matching CME put at the nearest listed strike. The difference comes down to net floor: what you keep after the cost of protection.
LRP insurance
Put option
| LRP insurance | Put option | |
|---|---|---|
| Premium subsidy | 35–55% federal | None |
| Upside | Kept — floor only | Kept — floor only |
| Margin calls | None | None on long puts |
| Cost timing | Due at endorsement end | Paid up front |
| Minimum size | 1 head | 1 contract = 50,000 lbs (≈62 hd @ 800 lb) |
| Flexibility / exit | Fixed weeks; hold to end date | Any trading day; exit anytime |
| Settles against | CME cash index | CME futures |
| Basis edge | Comes out ahead when cash settles below the futures price (weak basis) | Comes out ahead when cash settles above the futures price (strong basis) |
| Account | Crop-insurance endorsement via agent | Brokerage account |
Basis flows through under either tool. The sophisticated play is often to layer both — a subsidized LRP base with puts used opportunistically. Call us at (806) 484-1214 to talk through what fits your calendar.
Illustrative — not an official quote. This board shows figures entered by Texas Hedge for reference on the date shown; it does not provide Livestock Risk Protection or options quotes. Coverage prices, premium rates, and actual ending values are set daily by USDA-RMA and change every business day. Options premiums reflect delayed CME quote/settle sheets (July 7–8, 2026), matched to the nearest listed strike, and change continuously. Actual coverage, eligibility, price adjustment factors, and premiums are determined only by a licensed livestock insurance agent through a Specific Coverage Endorsement, or by your broker for options. Trading futures and options involves substantial risk of loss and is not suitable for all investors. LRP insures the CME Feeder Cattle Index, not your local cash price or your animals; it does not cover death, disease, or other loss. This is not a solicitation to buy insurance or trade futures or options. Past performance is not indicative of future results. Contact Texas Hedge Risk Management for a current, individualized quote.