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Livestock Gross Margin Dairy Insurance, also known as LGM Dairy, uses futures prices for corn, soybean meal and milk to determine expected and actual gross margin - the market value of milk minus feed costs. LGM Dairy is a USDA federally regulated program through the Risk Management Agency and can be tailored to fit different dairy operations.
Livestock Gross Margin Insurance, or LGM, protects against loss of gross margin - the market value of finished livestock minus feeder cattle and feed/corn costs during the insurance period. Livestock insurance coverage is available for cattle and swine finishing operations.
Livestock Risk Protection (LRP) protects against declining market prices without restricting profit potential. Coverage is available for fed cattle, market hogs and market lambs, as well as feeder pigs, lambs and steers. Risk Management Agency Prices and Premium Rates