Insured Maine Crops - Dairy

Getting Started With the University of Wisconsin LGM-Dairy Analyzer

Go to: http://future.aae.wisc.edu/lgm_analyzer/

1. Select the “Premium Estimator” tab.

2. Change the insurance contract month to the current month.

3. Select a deductible (ranging from $0-$2.00).

4. Change the feed values (or use “default”).

5. Select your contract months and amount of milk production.

6. Scroll down and click on the “calculate LGM premium” box.

7. Scroll down to view your gross margin guarantee at the bottom right in $/cwt.

This tool will provide estimates only. The actual gross margin guarantees used for contracts are determined on the last business Friday of the month.

For information about the recent changes to RMA/USDA Dairy insurance changes, go to Breakthrough in Dairy Insurance Program (pdf).

2011 Dairy Gross Margin Insurance video

Livestock Gross Margin Dairy Cattle Fact Sheet

Scroll down, and click “Livestock Gross Margin – Dairy Cattle”

Producer Testimony:

Crop Insurance Offsets Dairy Volatility

Livestock – Gross Margin (LGM)
for Dairy Cattle

The Livestock Gross Margin for Dairy Cattle Insurance Policy provides protection against the loss of gross margin (market value of milk minus feed costs) on the milk produced from dairy cows. The indemnity at the end of the eleven-month insurance period is the difference, if positive, between the gross margin guarantee and the actual gross margin. The Livestock Gross Margin for Dairy Cattle Insurance Policy uses futures prices and state basis for corn, soybean meal, and milk to determine the expected gross margin and the actual gross margin. The price the producer receives at the local market is not used in these calculations.

Any producer who owns dairy cattle in Maine, is eligible for Livestock Gross Margin for Dairy Cattle Insurance Policy coverage.

Only milk sold for commercial or private sale primarily intended for final human consumption from dairy cattle fed in any of the eligible states is eligible for coverage under the Livestock Gross Margin for Dairy Cattle Insurance Policy.

Producers can sign up for LGM 12 times per year and insure all their milk production they expect to market over a rolling 11-month insurance period. The producer does not have to decide on the mix of options.

More information about crop insurance for Dairy Cattle is available at the RMA web site and the following links.

http://www.rma.usda.gov/livestock/

Underwriting Rules

2009 Handbook

Premium Calculation Instructions

Frequently Asked Questions