Livestock Gross Margin

Livestock Gross Margin (LGM) is a federally reinsured livestock product that provides protection against the loss of gross margin.

The RMA monitors capacity levels, and when the funding limit has been reached, sales for this product will cease.

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 2026

• Premium is now billable the first of the second month after the last target marketing or the end of the insurance period per the actuarials, whichever is earliest.

Recent Updates

• 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 marketings fall below 85%.
• Evidence of actual marketings are due within 60 days of receipt of the Notice of Probable Loss.
• 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

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 marketing’s 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 2026

• Premium is now billable the first of the second month after the last target marketing or the end of the insurance period per the actuarials, whichever is earliest.

Recent Updates

• Evidence of actual marketings are due within 60 days of receipt of the Notice of Probable Loss.
• 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 prorated if the actual marketings fall below 85% to match Dairy Revenue Protection (DRP).

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 and the actual gross margin at the end of the 6-month insurance period).

New for RY 2026

• Premium is now billable the first of the second month after the last target marketing or the end of the insurance period per the actuarials, whichever is earliest.

Recent Updates

• LGM – Swine offers will not be available on dates when the USDA releases the Hogs and Pigs report.
• Loss payments will be prorated if the actual marketings fall below 85%.
• Evidence of actual marketings are due within 60 days of receipt of the Notice of Probable Loss.
• 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

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 CST for Cattle and Swine and 9:00 AM CST for Dairy Cattle.

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

Our LGM quoting software provides an efficient way for agents, farmers and ranchers to choose the best margin coverage for their Dairy, Cattle and Swine operations by analyzing commodity prices and flexible deductibles. 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.). Quote LGM now  >

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.