10/26/2011

Livestock Gross Margin-Dairy Program Enrollment Approaching

Next Enrollment Date: Friday, October 28, 2011

Cortland, N.Y. — The next enrollment date for the Livestock Gross Margin-Dairy Program is Friday, October 28, 2011. Livestock Gross Margin - Dairy (LGM-Dairy), is a federally reinsured dairy insurance program supported through the USDA Risk Management Agency (RMA).

Jeremy Forrett, Vice President, Crop Growers, LLP, urges interested dairy farmers to begin the application/target marketings report process well in advance of Friday, October 28th. RMA replenished Livestock Gross Margin Programs funding at the same amount as last year ($20 million), but has allocated less to LGM-Dairy ($7 million vs. $16 million). “We anticipate a high level of national interest during this enrollment period and emphasize that this program is available on a first-come, first-serve basis” said Mr. Forrett.

Class III Milk futures remain positive with the ability to protect a gross margin (Class III Milk futures minus CBOT/CME feed costs) above cost of production in most cases.

LGM-Dairy became available in 2008. In December 2010, RMA provided financial support for the program which encouraged a wider acceptance and by March 2011 the program had run out of funds.

For more information and to begin the process of understanding this valuable program or to enroll milk, contact your local Farm Credit East, ACA branch office or Crop Growers, LLP at 1-800-234-7012.

A useful tool was developed by Brian Gould at the University of Wisconsin: LGM-Dairy Analyzer: http://future.aae.wisc.edu/lgm_analyzer/