Livestock Gross Margin Insurance

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

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 continues to become more attractive with the addition of premium subsidies on cattle and swine, as well as a potential change to more frequent sales periods.

Benefits

  • Coverage is available on fed cattle, swine and dairy production (milk).
  • Simpler than using options or futures.
  • Similar to buying a put option on your livestock/ production to be sold plus a call option to limit higher feed costs
  • Can sign up 12 times a year to insure all milk/livestock production expected to be marketed over a rolling 11-month insurance period
  • Coverage is subsidized based on deductible
  • Dairy, cattle and swine premiums are billed at the end of the endorsement period

Basic provisions

  • Based on futures prices
  • Producer prepares a Target Marketing Report
    • Fed cattle: number in each month of the insurance period
    • Swine: number in each month of the insurance period
    • Dairy: target milk marketings and feed rations (best reflect actual production)
  • Insured at 100% share
  • Dairy/swine: in the 48 contiguous states
  • Fed cattle: specific states (including Farm Credit Services of America’s footprint)
  • Fed-cattle LGM is for calf and yearling finishing operations
  • Producer must submit a marketing report and sales receipts for actual marketings for each month within 15 days of receipt of notice of probable loss from the company

Available to all qualifying producers regardless of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status.

How does Livestock Gross Margin Coverage Work?

  • Application must be completed between 5 p.m. last Friday business day of the month and 8 p.m. the following evening
  • 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

Are you covered?

We know crop insurance decisions can feel complicated. Our insurance officers have access to a tool that analyzes your numbers and local data to help you make the best decisions to meet your goals. Get started by completing the inquiry form and we’ll find a time that is convenient for you to meet with us.

Why Work With Us for Livestock Insurance

Icon of a person with a thought could with a leaf in the center
Dedicated Specialists

Our agents are non-commissioned and focus 100% of their time on crop insurance and livestock insurance — every working day of every week in the year. They don’t sell property, casualty or life insurance.

Icon of a shield with three people within it
Highly Trained

Our insurance officers receive annual training on RMA changes to crop insurance and livestock insurance plans and stay informed throughout the year.

Icon of a light bulb and circle with a dollar sign and arrows pointing in a circle
Financial Expertise

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

Icon of a hand pointing at a browser window with a dollar sign in the middle
Decision-Making Tools

Our proprietary Optimum tool analyzes federal and private insurance policies to find the best choice whatever your risk management goal.

Farm Credit Services of America customers Krystl and Cody

Your Success Matters

You need a lender who understands agriculture and your unique needs. We have entire teams dedicated to your success, from local advisors to economists to commodity specialists and more. Every day, we work to be your most valued financial partner.

Crop Insurance Resources

Key Crop Insurance Dates

Important upcoming deadlines for crop insurance.

July 1, 2024

Premium Billing Date
Winter Wheat

July 15, 2024

Acreage Report Deadline
Corn, Soybeans, and Spring Wheat

August 15, 2024

Premium Billing Date
Corn, Soybeans, Spring Wheat, and 
Winter Wheat and Spring Wheat on Same Policy – NE, SD 

August 20, 2024

Harvest Price Announced
Winter Wheat

Ready to Get Started

Complete the inquiry form or connect with a local office for more information.