Changes simplify and extend LGM-Dairy program

USDA expanded the Livestock Gross Margin-Dairy (LGM-Dairy)  program to Kentucky, New Mexico, Tennessee and Washington, to bring the total to 33 states in the program.
LGM-Dairy, administered through the federal crop insurance program, allows producers to insure the gross margin on their milk production – market value of milk minus cost of feed.
Other c
hanges to the program will make it simpler to use, said Alan Zepp, risk management specialist at Pennsylvania’s Center for Dairy Excellence.
Producers will have the  option of using their own feed prices or using the default feed coefficients added for the LGM for Dairy program. Currently, producers calculate their basis and convert their own soybean and corn purchases into feed coefficients.

The window to purchase a policy will be extended from a 12-hour period to a 24-hour period each month. Prices are announced the last business Friday of each month – producers will have until 8 p.m. the next evening to purchase a policy based on those prices, Zepp said.
Changes to the program go into effect in July. For more information, talk to a crop insurance agent. A list of agents authorized by insurance providers to write LGM for Dairy policies can be found on USDA Risk Management Agency’s website: www.rma.usda.gov.
Contact Zepp at 717-346-0849 or email: azepp@centerfordairyexcellence.org.

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