Gross Margin Dairy Cattle insurance sign up
Washington Ag Today July 30, 2009 USDA’s Risk Management Agency recently announced that the Livestock Gross Margin Dairy Cattle plan of insurance, LGM-Dairy, has been expanded to include Washington state. Jo Lynne Seufer with the regional office of RMA says LGM-Dairy provides protection against loss of gross margin, that is the market value of milk minus feed costs. Seufer: “It uses the Chicago Mercantile Exchange Group futures prices for Class III milk and the Chicago Board of Trade futures prices for corn and soybean meal. Those two prices determine an expected gross margin and the actual gross margin.” Producers can sign up for LGM-Dairy 12 times per year and insure all their milk production they expect to market over a rolling 11-month insurance period. Seufer says Washington producers can begin signing up for the 2010 crop year July 31st of 2009. Seufer: “Washington state we were very excited. The Dairy Federation and even the governor was very excited about asking for the expansion of this program. So we are pleased to have this.” LGM-Dairy, which is still a pilot program, will be sold through local livestock insurance agents. You can learn more at the RMA Web site
www.rma.usda.gov The site also has a list of insurance agents.
I’m Bob Hoff and that’s Washington Ag Today on the Northwest Ag Information Network.
