Home - Livestock Gross Margin (LGM) for Dairy Cattle
For information about the recent changes to RMA/USDA Dairy insurance changes, go to Breakthrough in Dairy Insurance Program (pdf).
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.
Livestock Gross Margin (LGM) for Dairy Cattle Insurance Policy [PDF; Word]
More information about crop insurance for dairy cattle is available at the Risk Management Agency.
Maine Dairy Links: University of Maine Cooperative Extension Dairy & Livestock
In Cooperation with the Risk Management Agency of the United States Department of Agriculture.
