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Livestock Gross Margin Insurance

Protection against a decrease in margin caused by a drop in livestock prices or an increase in feed costs.

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Product Overview

Understanding Livestock Gross Margin Insurance

Livestock Gross Margin (LGM) is a federal risk-management program designed to protect against a decrease in margin caused by a drop in livestock prices or an increase in feed costs. LGM can be a good fit for any farm size as it has no head limitations. This product is made even more attractive with the new option to book coverage concurrently with other programs like Livestock Risk Protection (LRP) and Dairy Revenue Protection (DRP). Production cannot be double insured, but coverage end dates for LRP and LGM or DRP and LGM policies can overlap.

Livestock, sustainable and herd of cattle on a farm in the countryside for eco friendly environment. Agriculture, animals and cows for meat, dairy or beef trade production industry in a grass field

Benefits

Uses area pricing to determine indemnities (the producer’s price is never used).
Offered on a per head basis.
Available coverage for unborn cattle and swine.
Ability to market livestock up to 60 days prior to the end of the insurance period.

General Information

Based on futures prices.
Producer prepares a Target Marketing Report
- Fed Cattle and Swine: number in each month of the insurance period.
- Dairy: target milk marketings and feed rations
Insured at 100%.

Availability

Uses area pricing to determine indemnities (the producer’s price is never used).
LGM-Cattle is available to any producer who owns cattle across Minnesota, North Dakota, and Wisconsin.
LGM-Swine is available in Minnesota, North Dakota, and Wisconsin for the following operations:
- Farrow to finish
- Feeder pig-finish
- Segregated early weaned (SEW)
LGM-Dairy is available to any producer who owns dairy cattle in Minnesota, North Dakota, and Wisconsin. To qualify, all milk produced for commercial or private sale must be intended for human consumption.

Available to all qualifying producers regardless of race, color, national origin, religion, sex, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted of funded by USDA (not all bases apply to all programs).

How does Livestock Gross Margin Coverage Work?

Application must be completed on Thursdays after coverage prices and rates are posted on the RMA website and before 8:25 a.m. CST for fed cattle and swine and 9 a.m. CST for dairy
Choose a deductible:
- Fed cattle: $0-$150/head
- Swine: $0-$20/head
- Milk: $0-$2/cwt.
Insurance period:
- Fed cattle, dairy: 11 months
- Swine: 6 months
- Coverage begins in the second month
Gross Margin Guarantee – Actual Gross Margin = Indemnity

Why Work With Us for Livestock Insurance

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Dedicated Specialists

Our agents are non-commissioned and focus 100% of their time on crop insurance and livestock insurance. They don't sell property, casualty or life insurance.

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Financial Knowledge

As a lender, we understand financial risk and work to protect your working capital and whole operation, not just your crop or livestock.

Agriculture Focused

Personalized support and financial insights from experienced and highly trained agriculture insurance professionals help you make informed decisions.

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Exclusive Tools

Leverage our exclusive policy review and Hail Analyzer tools to receive a personalized insurance plan - maximizing your net indemnity, cash flow, forward market opportunities, and minimizing your premium costs.