Livestock Gross Margin (LGM) provides protection for cattle, dairy cattle and hogs in the form of insuring the producer against decreases in gross margin (market value of livestock/livestock product minus the cost of feed).  LGM breakdown for different livestock is as follows:

• LGM for Cattle provides protection against loss of gross margin (market value of cattle minus feeder cattle and feed costs) on cattle. Essentially, Cattle LGM covers a decline in cattle prices and/or an increase in feed costs and/or an increase in feeder cattle prices.

• LGM for Dairy Cattle provides protection against the loss of gross margin (market value of milk minus feed costs) on the milk produced from dairy cows.

• LGM for Hogs provides protection of the gross margin between the value of insured hogs and the cost of corn and soybean meal. LGM covers a decline in hog prices and/or an increase in feed costs.