Livestock Gross Margin - Dairy (LGM)

This policy provides protection against the loss of gross margin (market value of milk minus feed costs) on the milk produced from dairy cows. LGM-Dairy uses futures prices to determine the expected gross margin and the actual gross margin. The price the producer receives at their mailbox is not used in these calculations. The Federal Subsidy of the farmer premium is between 0%- 50% depending on the deductible and if more than one month of coverage is chosen. To enroll, producers must sign up on the last business Friday of the month. It is recommended that you begin the application/target marketing report process well in advance of the sign up deadline. Funding for this program has been capped and will be available on a first-come first-served basis.

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