US cattle producers face volatile prices due to cattle cycles, drought, and unexpected market shocks. USDA-RMA offers subsidized insurance programs like Livestock Risk Protection (LRP) to mitigate output risks, yet participation remains limited. Using a 21-year state-level panel and a two-part econometric model, this paper evaluates how risk management education workshops influence LRP utilization among feeder cattle producers. Results indicate that education workshops increase the likelihood of insurance participation, especially in non-pilot states, while subsidies dominate in pilot states. The marginal effect of education is smaller in higher subsidy environments, suggesting substitution between education and subsidy.

Livestock risk protection (LRP) insurance is a price risk management tool available to cattle producers; however, producers have been hesitant to adopt LRP. The objective of the study was to determine the monthly feeder cattle LRP contract coverage level and length maximizing the probability of the LRP net price being greater than the CME Feeder Cattle Index (CME FCI) price. The CME FCI prices were higher than the LRP net price for the majority of the contract lengths and coverage levels. Several coverage lengths and levels provided similar price protection, and there was no consistent preferred coverage length and level.