Features and Benefits
Dairy Revenue Protection (Dairy-RP)
Dairy Revenue Protection provides insurance for the difference between the final revenue guarantee and actual milk revenue if prices fall. It also provides a greater choice of prices, from those that focus on cheese to fresh milk, protein or butterfat. Coverage levels are available from 70 to 95 percent of revenue. Dairy Revenue Protection is available in all counties in all 50 states.
To view USDA's Fact Sheet on the program, click here. For a list of frequently asked questions, click here.
Livestock Gross Margin (LGM) Dairy
LGM-Dairy is an insurance program protecting dairy producers against the unexpected decline in gross margins (milk income less feed costs) when feed costs rise or milk prices drop. LGM-Dairy covers the difference between the gross margin guarantee and the actual gross margin based on the market value of milk minus feed costs.
Producers must estimate the quantity of milk to be marketed (insured) and the feed quantities used for the quantity of milk marketed, and then determine a deductible level and months to insure the gross margin. LGM-Dairy can be a beneﬁt to dairy producers allowing them to decrease the downside margin risk exposure while capitalizing on upside market prices.
Livestock Gross Margin (LGM) Cattle/Hogs
LGM provides loss protection against the gross margin which is determined by the market value of the livestock minus feed costs. Maintaining profitability margins against production expenses can be challenging when raising animals to market weight. An indemnity will be paid if the actual gross margin is lower than the guaranteed gross margin. This coverage lets you select the coverage level, coverage price, and insurance period that match your marketing cycle. This product is available on cattle and swine.
Livestock Risk Protection (LRP)
LRP protects you against a decline in livestock prices. This policy is designed to protect your profit if prices were to decline within the period in which you purchased the insurance. This coverage also lets you select the coverage level, coverage price, and insurance period that match your marketing cycle. This is available on swine, feeder cattle, fed cattle and lambs.