50 Nebraska Cattleman August 2023 NCIG By Todd Bartek Senior VP and Director of Ag, Central/Eastern Nebraska A Story About Livestock Risk Protection Insurance often seems transactional – something we buy because we are required to have it. It’s hard to see the benefit of the premiums spent, unlike a new piece of farm equipment where we get something tangible to use every day for the payments we make. However, as an insurance agent, I often experience the value of having an insurance policy cover a claim when my clients need it most. The best part of my job is when I can help my clients protect what they’ve worked hard to build. I’m sure you’ve heard about and probably tested many of the generative artificial intelligence (AI) tools that are available today. I asked one to help me write a story about how a Livestock Risk Protection (LRP) policy helped a Nebraska cattle producer with a claim. It did a good job explaining how the policy works and what it can protect you from. I’ll let you decide if it is a good storyteller or not. Once upon a time in the vast prairies of Nebraska, there was a dedicated cattle producer named John. For years, he had poured his heart and soul into raising healthy, robust cattle. It was his passion, his livelihood and his legacy. But the unpredictable nature of the livestock market always kept him on his toes. One sunny morning, as John sat down with a cup of coffee in hand, he checked the latest market prices. His heart sank as he noticed a sudden and substantial decline in cattle prices. The market had been hit by unforeseen fluctuations, leaving him deeply concerned about the future of his operation. The hard work, long hours and countless sacrifices he had made were at risk. As panic set in, John remembered something he had heard about called Livestock Risk Protection (LRP). It was a risk management tool that could protect him from these exact situations. With a glimmer of hope, he dug out the LRP policy he had purchased some time ago. Feeling a sense of relief, John realized that the coverage period he had chosen aligned perfectly with the current market situation. John reached out to the U.S. Department of Agriculture (USDA), the provider of LRP, and was guided through the claim process. With each document carefully submitted, including sales receipts and proof of the number of head insured, he felt a renewed sense of control over his circumstances. Days turned into weeks as John anxiously awaited news about his claim. Then, one sunny afternoon, an envelope arrived in the mail. He tore it open with trembling hands, revealing a check. It was the indemnity payment from the USDA, covering the financial loss he had incurred due to the market price decline. A surge of relief washed over John as he realized the significance of this payment. It was more than just a monetary value; it represented security, stability and the preservation of his hard work. With the indemnity payment, John could continue his cattle operation without exCONTINUED ON PAGE 52 If fluctuations in the livestock market are one of your concerns, an LRP policy may be something to explore. It allows producers like you to choose the coverage level, the number of head to be insured, the weight range of the livestock and the coverage period. 1/4 Horizontal Nebraska Cattleman 4 color Commodity Solutions June 2021 Commodity Solutions, Inc. Serving Nebraska’s Cattle Producers • Grain & Livestock Hedging • Feed Commodity Broker • Corn Procurement Services • Cattle Hedge Accounting Humphrey, Neb. 402-923-0264 www.commoditysolutions.com Norfolk, Neb. 402-371-3151
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