Livestock Gross Margin

Our Program:

Ag Hedge Desk offers a package of tools specifically designed to support companies, agents, and producers in making the best livestock insurance coverage decisions. Our tools support Livestock Gross Margin (LGM). 

LGM FAQs:

  • What is Livestock Gross Margin (LGM) insurance?

    LGM is an insurance program designed to insure against unexpected declines in a livestock producer’s margins due to rising input commodity prices or declining revenue from livestock or milk sales. LGM is available for cattle, swine, and dairy producers

  • What does Ag Hedge Desk offer regarding LGM?

    Ag Hedge Desk offers a package of tools specifically designed to help users make the best decisions with LGM insurance. Our decision tool, automated quoting, visual reports of insured production, and market knowledge bring value to producers and agents alike. If you are a certified LGM crop insurance provider and are interested in learning more about the tools and services we provide, contact us for more information

  • Which commodities are used to calculate the LGM margin?

    The commodities used depend on the species of livestock insured. These futures markets are used to determine prices:

    Cattle: Live Cattle, Feeder Cattle and Corn futures market prices
    Swine: Lean Hogs, Soybean Meal, and Corn futures
    Dairy: Milk, Soybean Meal and Corn futures
    Swine: Farrow-to-Finish, SEW, or Feeder Pig-Finishing

  • How do I use LGM insurance?

    Type of livestock (cattle and swine only)
    For LGM Dairy only, a producer may adjust the ratio of milk to corn and soybean meal used in the margin calculation. LGM Cattle and Swine programs use a fixed ratio of commodities in their LGM margin calculation.
    Cattle: Calf-Finishing or Yearling Finishing

  • Which month(s) can I insure with LGM?

    Swine is available up to 6 months out. Cattle and dairy are available up to 11 months out.

  • What volume of production should I insure?
    The number of head (cattle and swine) or hundredweights of milk (dairy)
  • How do I obtain LGM insurance?

    LGM is available for purchase from crop insurance agents certified to sell LGM insurance. LGM Swine and Dairy are available in the contiguous 48 states. LGM Cattle is available in 20 select states. For more information on obtaining coverage, contact an agent. If you would like assistance finding an agent we work with, contact us.

  • How often is LGM offered?

    LGM is offered every Thursday. LGM prices are calculated using a 3 day average of futures market close prices (Tuesday-Thursday). Coverage may be purchased from late afternoon Thursday until early Friday morning.

  • Can I use Dairy Margin Coverage (DMC), Dairy Revenue Protection (DRP) and LGM Dairy at the same time?

  • Yes. With the new farm bill, dairies may utilize both DMC and DRP or LGM-Dairy at the same time and on the same expected production. Dairies can also use LGM-Dairy and DRP in the same crop year, as long as coverage is not active in the same quarter.

  • Is there any way a producer can end up paying more than the premium for the insurance coverage?

  • No, the maximum amount that will be owed is the premium. There are no additional hidden costs or fees.

Consulting:

Additionally, insurance providers may be interested in our consulting services. Ag Hedge Desk Offers consulting at every level from producer up to commercials and corporations. Our consulting services are tailored to the customer’s needs, covering everything from risk assessments to trade execution. We also offer strategy modeling, risk management plans, reinsurance hedging, innovative solutions, and customer analytics. Let our consulting group help identify, analyze, and mitigate your risk. Our team is available for one on one consultations to see if we are the right fit for you business.

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