In short you're buying subsidized insurance policy against the market falling. You set a price and determine when your insurance expires. If the market is below that price on that date then you get paid.
Premiums vary depending on time, volatility, that kind of thing.
If the market goes up cool you get paid anyway, you're just out your premium money.
It doesn't matter if you have ugly cattle or beautiful cattle the program is the same. There is a different price for dairy beef versus "regular"
It doesn't matter what your purchase price or sale price was. This is strictly a hedge against the market dropping.
LRP policies can be bought from mostly the same people you buy crop insurance from.