(866) 374-2112 brandon@usdainsurance.com

LIVESTOCK GROSS MARGIN

The Livestock Gross Margin Insurance Plan for Dairy Cattle (LGM-Dairy) provides protection when feed costs rise or milk prices drop and can be tailored to any size farm. Gross margin is the market value of milk minus feed costs. LGM-Dairy uses futures prices for corn, soybean meal, and milk to determine the expected gross margin and the actual gross margin. LGM-Dairy is similar to buying both a call option to limit higher feed costs and a put option to set a floor on milk prices.

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Call: (866) 374-2112
Email: brandon@usdainsurance.com

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Livestock & Dairy Insurance Solutions
brandon@usdainsurance.com
(866) 374-2112

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