LGM - Dairy
More information on LGM-Dairy can be found on the Pennsylvania Center for Dairy Excellence website: http://www.centerfordairyexcellence.org/index.php/risk.html
Track the current numbers for your farm using the excellent U-WI calculator located at: http://future.aae.wisc.edu/lgm_analyzer/
Note: If you are interested in purchasing LGM-Dairy, be aware that this program is allocated a fixed amount for underwriting expenditures each Federal fiscal year. Once this amount has been expended, LGM-Dairy is no longer available for enrollment. Contact your crop insurance agent for more information on availability and sales closing dates for this plan.
Using RMA Dairy Gross Income Insurance Rules
Milk Income over Feed Cost. June 2011
Improvements strengthen risk management landscape for dairy risk management.
Milk Income over Feed Cost. Includes estimates for August 2008-January 2010 enrollment periods. 2010. Powerpoint presentation
Income over Feeds Cost Worth? March 2011
February 2011 Enrollment Period. Excel Spreadsheet
Provides dairy producers a monthly enrollment opportunity to develop and implement a financial safety-net for their business plan for the year ahead, with protection the last 10 months of each 12 month enrollment period.
Penn State Extension Educators. September 2010
In order to use LGM-Dairy insurance as an effective risk management tool you need to understand the concept of basis. Basis is the month-to-month difference between you gross milk price and the USDA announced Class III milk price. This publication will help you calculate the basis for your farm.
Dairy producers interested in locking in milk prices for a portion of their future delivery of milk can use the futures market to reduce their risk. They do this by hedging, which is the buying or selling of futures contracts to offset the risk of price changes in the cash market.