Three different kinds of insurance are now available for Wisconsin livestock and dairy producers.

Livestock Risk Protection (LRP):

• Protects against declining market prices without restricting profit potential
• Coverage is available for producers of feeder cattle, fed cattle, swine and lamb

Livestock Gross Margin Dairy (LGM Dairy)

LGM Dairy Brochure

• Protects a producer by determining monthly estimates of milk to be sold minus the feed to be consumed to produce it. (Market Value of Milk - Feed Costs = Gross Margin)
• All feeds are converted to a corn or soybean bas with prices determined by the CBOT.
• The CME determines the milk prices during the insurance period.
• LGM Dairy Insurance is an 11 month insurance period purchased the 3rd to the last trading day of the month and premiums are due at that time.

Livestock Gross Margin (LGM):

• Protects against loss of gross margin (market value of finished livestock minus feeder cattle and feed/corn costs during the insurance period)
• Coverage is available for finishing operations on cattle, dairy cattle and swine

Price protection establishment:

• One-time application for each class of livestock being insured
• A Specific Coverage Endorsement (SCE) establishes specific insurance coverage
• Price is figured off the Chicago Market Exchange
• Coverage can only be purchased when the markets are closed
  • Once coverage is in place, it cannot be canceled
  • Prices and insurance premiums change daily
  • Premium is due with each SCE
  • Coverage is not effective until the premium is received by the insurance company
  • No need to file claims, because any indemnity due will automatically be calculated by the company at the end of the insurance period

Please contact Badgerland Financial today talk to one of our nsurance specialists for more information on both LRP and LGM.