LIVESTOCK PROTECTION
What is LGM Coverage?
Livestock Gross Margin (LGM) insurance is a specialized risk management tool designed to protect the margin between your feed costs and the market value of your livestock. Unlike traditional price insurance, LGM addresses the actual spread that determines your bottom line, shielding your operation from the double-edged sword of falling market prices and rising grain expenses.
This coverage serves a wide variety of producers, including dairy, yearling cattle, and swine operations. By allowing you to bundle protection for both your outputs and your inputs, LGM provides a more comprehensive safety net than price-only policies, ensuring that the core profitability of your operation remains intact regardless of market volatility.
At We Protect Farms, we believe that protecting your gross margin is not just about the current season—it is about ensuring the financial stability and planning confidence needed to maintain your legacy for the next generation. Our specialists walk alongside you to tailor these policies to your specific production cycle, providing the peace of mind you need to focus on what you do best: running your farm.
Income Stability
Secure predictable gross margins to protect your ranch's financial health against unforeseen livestock market volatility.
LGM coverage offers a powerful suite of benefits designed to stabilize your operation and provide a firm foundation for future growth by protecting the critical margin between feed costs and livestock prices.
Downside Protection
Mitigate the risks associated with rising input costs or falling settlement prices during your critical production cycles.
Planning Confidence
Expand and invest in your livestock operation with the security of federally-backed gross margin guarantees.
Coverage Flexibility
Select the specific months and quantities that best match your herd's unique marketing and feeding cycles.
How LGM Works
01
Enrollment & Coverage Choice
Producers begin by selecting the specific livestock categories and months for coverage, tailoring the policy to align perfectly with their unique production and marketing cycle.
02
Setting the Expected Gross Margin
The policy establishes a guaranteed gross margin based on the difference between the forecast market value of the livestock and the expected costs of corn and soybean meal feed.
03
Monitoring Market Prices
Throughout the insurance period, the policy tracks actual market prices for both livestock and inputs using verified daily data from the CME and USDA market reports.
04
Indemnity Realization
If the final actual gross margin falls below your guaranteed coverage level—whether due to falling livestock prices or rising feed costs—an indemnity payment is triggered.
Enrollment & Timing
- Purchase coverage weekly every Thursday afternoon.
- Deadline for applications is Friday at 9:00 AM.
- Protection begins immediately once approved.
Coverage & Operation Interaction
- Selection of staggered coverage periods from 1 to 11 months.
- Subsidized by the Federal Government to maintain affordable premiums.
- Includes flexible head limits for cattle, dairy, and swine operations.
- Integrates with other risk strategies for comprehensive farm stability.
- No minimum headcount required for small-scale producer participation.
Data Sources & Markets
- Values derived directly from CME Group localized futures.
- Protects the spread between feed costs and market indices.
- No individual farm production records or adjusters required.
Get Your LGM Quote
Protecting the gross margin between your feed costs and livestock market value is critical for a stable ranching operation. Our specialists provide the expertise needed to secure your profit potential. Share your details below to receive a personalized quote for LGM coverage tailored to your cattle, dairy, or swine production.