Livestock Gross Margin Dairy Insurance
Livestock Gross Margin Dairy Insurance (LGM-Dairy) is an insurance policy approved by the USDA Risk Management Agency available for dairies. LGM-Dairy helps protect your farm’s margin against unexpected declines in milk price or rises in feed costs (IOFC = milk revenue less the feed costs).
LGM-Dairy premiums depend on producers’ marketing plan, coverage selected, deductible level, futures prices and volatility. Producer premiums are average of expected long-run indemnities at sign up.
How we can help:
- Monitor your contracts performance against the Class III Milk, Soybean and Corn futures.
- Explain how to incorporate LGM into a viable marketing plan. This will allow you to look at month-by-month margin guarantees between Milk Prices and Feed Costs and will act as a hedge for your cash flow and financial projections.
- Convert your lactating cow ration to Corn and Soybean Meal equivalents to help you incorporate your feed rationing into your LGM-Dairy contract.
- Show you available tools that will allow you to calculate scenarios. These scenarios will show what results you can expect for the next contract period, helping you to find the level of risk management that is right for you and your cash flow.
Find out more about Livestock Gross Margin Dairy Insurance. Contact Us or call 1-866-577-1831. Find out more information on our other insurance offerings.