LIVESTOCK GROSS MARGIN DAIRY (LGM Dairy)
LGM Dairy Brochure (click to view)

LGM Dairy Insurance is a federal crop insurance corporation-sponsored product designed to help dairy producers manage milk revenue risk. LGM Dairy is customizable to fit your operation, and there is no minimum amount of milk that must be insured.

Following are a few highlights:

*Allows producers to ensure a breakeven milk price or lock in a profit, with a feed component added. Helps set a “floor” under milk revenue, yet not limit the upside potential for higher milk prices.

*Premiums are not due until the end of the contract, sometimes a year after sign-up, and premiums are subsidized at rate of 18 percent up to 50 percent.

*Protection can be chosen from two months in the future through 11 months in the future. Producers can pick all 10 insurance periods or any single month or any combinations of months.

Note: This product can only be purchased on the last business Friday of every month. Upcoming sales dates are February 22, March 22, April 26 and May 31. 

LGM DAIRY FUNDING UPDATE: It appears that Federal funding for LGM Dairy Insurance will be sufficient to run the program through mid-summer and possibly through the complete fiscal year.

 

LIVESTOCK GROSS MARGIN (LGM)

*Protects against loss of gross margin (market value of finished livestock minus feeder cattle and feed/corn costs during the insurance period)
*Coverage is available for finishing operations on cattle and swine

LIVESTOCK RISK PROTECTION (LRP)

*Protects against declining market prices without restricting profit potential
*Coverage is available for producers of feeder cattle, fed cattle, swine and lamb

Questions or want to learn more? Please contact Ken Hartzell, LGM Specialist at 866.492.2200 x1 or via This e-mail address is being protected from spambots. You need JavaScript enabled to view it .