Livestock Gross Margin (LGM) Insurance
Livestock Gross Margin (LGM) provides coverage for the difference between the commodity and feeding costs. If the producer-determined expected gross margin is greater than the actual gross margin, an indemnity is due.
This policy is designed to insure against declining market prices of livestock and not any other peril. Coverage is determined using futures and options prices from the Chicago Mercantile Exchange (CME) Group. Price insurance is available for swine, cattle, lambs and milk. Producers decide the number of head (cwt of milk) to insure and the length of the coverage period.
Insurance Programs & Risk Management Tools
Our goal is to educate and advise our customers on all options available to them including —Public Programs offered through Federal Crop Insurance, Private Programs offering deeper levels of coverage, and Hedging programs protecting against market volatility. Explore some of our insurance solutions: