LIVESTOCK
Livestock Gross Margin
Livestock Gross Margin (LGM) is a federally reinsured livestock product that provides protection against the loss of gross margin.
New for RY 2027
An insured with LGM target marketings can also have DRP/LRP coverage in the same month as the QCE/SCE end date, only if both policies are with the same AIP.
LGM Cattle
Livestock Gross Margin (LGM) Cattle is a federally reinsured livestock product that provides protection against the loss of gross margin (market value of cattle less feeder cattle and feed costs) on fed cattle (yearling and calf). The LGM insurance policy uses futures prices to determine the expected gross margin and the actual gross margin. LGM does not insure against death, loss, or any other loss or damage to the producer’s cattle. LGM - Cattle is a bundled option that covers both the cost of feeder cattle and the cost of feed. This effectively insures the producer’s gross margin (difference between the Gross Margin Guarantee and the Actual Gross Margin at the end of the 11-month insurance period).
New for RY 2027
New for RY 2027
- LGM Cattle offers will not be available on days the Cattle Inventory Report is released.
- Increase to the LGM Cattle maximum allowable target weights.
- Yearling Finishing:
- 6.00 – 12.00 cwt Target Feeder Cattle Weight
- 12.00 – 18.00 cwt Target Live Cattle Weight
- Calf Finishings:
- 4.00 – 6.00 cwt Target Feeder Cattle Weight
- 11.00 – 16.00 cwt Target Live Cattle Weight
- Yearling Finishing:
- Premium is now billable the 1st of the 2nd month after the last month with target marketings or the end of the insurance period per the actual documents, whichever is earliest.
- LGM Cattle offers will not be available on dates when the USDA releases the Cattle on Feed report.
- The producer is now able to select the Target Corn Weight, Feeder Cattle Weight and Live Cattle Weight for both the Calf Finishing Operation and the Yearling Finishing Operation.
- Loss payments will be prorated if the actual marketing falls below 85%.
- The sales period begins each Thursday after the price guarantee is posted to the RMA site and ends the following day (Friday) at 8:25 AM Central.
LGM Dairy Cattle
Livestock Gross Margin (LGM) Dairy Cattle is a federally reinsured livestock product that provides protection against the loss of gross margin (market value of milk less feed costs) on the targeted quantity of market milk. The LGM insurance policy uses futures prices to determine the expected gross margin and the actual gross margin. LGM does not insure against death, loss, unexpected decrease in milk production or unexpected increases in feed use. The mix of target milk marketings and target feed ratio allows a producer to select feed ratio and production levels that best reflect their actual production. This effectively insures the producer’s gross margin (difference between the gross margin guarantee and the actual gross margin at the end of the 11-month insurance period).
New for RY 2027
Recent Updates:
New for RY 2027
- Records across plans (DRP & LGM Dairy) are used to determine if total marketings are greater than or equal to 85% that fall within QIP/Target Marketing Months/End Date.
Recent Updates:
- Premium is now billable the 1st of the 2nd month after the last month with target marketings or the end of the insurance period per the actual documents, whichever is earliest.
- LGM Dairy Cattle offers will not be available when the USDA releases the Milk Production, Cold Storage and Dairy Products report.
- Loss Payments will be pro-rated if the actual marketings fall below 85% to match DRP.
- The sales period begins each Thursday after the price guarantee is posted to the RMA site and ends the following day (Friday) at 9:00 AM Central.
LGM Swine
Livestock Gross Margin (LGM) Swine is a federally reinsured livestock product that provides protection against the loss of gross margin (market value of hogs less feed costs). The LGM insurance policy uses adjusted futures prices to determine the expected gross margin and the actual gross margin. LGM does not insure against death, loss, or any other loss or damage to the producer’s hogs. LGM - Swine is a bundled option that covers both the cost of hogs and the cost of feed. This effectively insures the producer’s gross margin (difference between the gross margin guarantee andthe actual gross margin at the end of the 6-month insurance period).
Recent Updates:
Recent Updates:
- LGM Swine offers will not be available on dates when the USDA releases the Hogs and Pigs report.
- Loss payments will be pro-rated if the actual marketings fall below 85%.
- Premium is now billable the 1st of the 2nd month after the last month with target marketings or the end of the insurance period per the actual documents, whichever is earliest.
- The sales period begins each Thursday after the price guarantee is posted to the RMA site and ends the following day (Friday) at 8:25 AM Central.
Coverage
Insurance coverage begins one month and one day following the sales closing date.
Deductible:
- Cattle: $0 – $150 per head (in $10 increments)
- Dairy Cattle: $0 to $2.00 per hundredweight of milk (in $0.10 increments)
- Swine: $2 – $20 per head (in $2 increments)
Quote Coverage
Take a look at LGM weekly margins and rates without having to have a policy set up first! (New rates and margins available on Thursdays, when available through Friday morning sales closing.).
Premium Subsidy
- Cattle: Based on the deductible selected by the producer and ranges from 18% with a $0 deductible to 50% with a deductible of $70 or greater.
- Dairy Cattle: Based on the deductible selected by the producer and ranges from 18% with $0 deductible to 50% with a deductible of $1.10 or greater.
- Swine: Based on the deductible selected by the producer and ranges from 18% with a $0 deductible to 50% with a deductible of $12 or greater.
The information contained in this publication is for general purposes only and shall not modify the terms of any insurance policy.
Quote DRP in the eHarvest Processing System without having to set up a policy first! Hudson Crop agents can also access the DRP Quoter through via eHarvest.
LGM quoting tool allows agents and ranchers to select the best margin coverage for their Dairy, Cattle and Swine operations by analyzing commodity prices and flexible deductibles.
LRP Quoter provides 24-hour access and up-to-the-minute quotes for the RMA Livestock Risk Protection Insurance Program for Fed Cattle, Feeder Cattle and Swine.
Contact Us
If you have any livestock-related questions or comments, please fill out this brief form and one of our representatives will respond.
For general Hudson Crop & Livestock policy questions, please call
Call (866) 450-1445.
For general Hudson Crop & Livestock policy questions, please call
Call (866) 450-1445.
