CARTHAGE, MO. (RFD-TV) — As fall weaning gets underway, cow-calf producers are weighing whether to sell calves at weaning or retain them longer in hopes of adding value.
Jake Charleston with Specialty Risk Insurance Agency recommends considering Livestock Risk Protection (LRP) as part of that decision.
In his interview with RFD-TV, Charleston said many producers are deciding whether to sell spring-born calves directly off the cow or hold them until after the first of the year.
Managing Price Volatility
For producers planning to retain calves, Charleston recommends using LRP to establish a price floor while keeping the opportunity to benefit if markets move higher.
“We highly recommend getting LRP on them with their floor protection,” Charleston said.
He noted that futures prices and LRP coverage levels have moved closer together in recent months, improving the relationship between the two.
Charleston said recent market volatility reinforces the need for a consistent risk management plan rather than trying to predict every market move.
“We think it should be a part of your plan every year to put your protection on,” he said. “The market’s going to swing.”
Getting Started With LRP
Producers new to LRP do not have to insure their entire calf crop. Charleston said they can purchase coverage by the head or insure a percentage of their calves.
“Get on, get a feel for it, get your feet wet,” he said, encouraging producers to begin using the tool and incorporate it into their marketing plans.
LEARN MORE: specialtyrisk.ag
