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Dairymen, Get Your Cows In Line For Dairy LGM Signup

Dairymen, Get Your Cows In Line For Dairy LGM Signup

Anticipated high national demand for protection may quickly hit the milk max.

Hoping to protect your gross margins from losses due to high feed costs and low milk prices? Who isn't?

That's why it's prudent to make plans now to enroll in the Dairy Livestock Gross Margin program on Oct. 28-29. As Pennsylvania Ag Secretary George Greig points out, it may be your only chance to protect against those declines this year.

COVER MY MILK MARGINS! Considering the alternative, cows want to stay in business as much as milk producers do. Protecting gross margins with insurance helps.

LGM for Dairy Cattle is an insurance policy that protects against the loss of gross margin (market value of milk minus feed costs) on milk produced. The upcoming enrollment period is only two days. And Greig strongly encourage dairy producers to set up a meeting with a crop insurance agent now to consider how this flexible insurance product can work for their operations,

In brief, it's a monthly dairy risk management tool that covers the difference between projected and actual gross margins (income over feed cost) during a producer-selected number of months for a targeted amount of milk. A loss payment results when the expected gross margin exceeds the actual gross margin.

Federal underwriting guidelines limit the total amount of milk that can be protected. That's why Greig urges making key decisions well before the October enrollment deadline. "And, plan to sign up for the full 10 months in October to ensure you won't be left without protection."

Policies are available on a month-to-month basis to insure some or all milk from one to 10 months. Producers pay varied premiums ranging from zero to $2 per hundredweight, depending on the desired level of coverage.

Prices are announced the last business Friday of each month. Producers have until 9 p.m. the following evening to purchase a policy based on those prices.

Got questions? USDA's Risk Management Agency has answers. Check them out at

Or for more information, contact a crop insurance agent or Karen Powell, risk management specialist for the Ag Department at 717-705-9511.

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