Dairy and Livestock Insurance

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 80 to 95 percent of revenue. Dairy Revenue Protection is available in all counties in all 50 states.

For a fact sheet on Dairy Revenue Protection, click here. For a list of frequently asked questions, click here.


Livestock Gross Margin (LGM) Dairy

LGM-Dairy is an livestock 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.

GreenStone FCS is an equal opportunity provider and employer.


  • What are the LGM-Dairy deductibles?
    A producer can select deductibles between $0-2.00 per hundredweight of milk, in increments of $.10.
  • What milk and feed prices are used?
    LGM-Dairy uses futures prices for corn, soybean meal and milk to determine the expected gross margin and the actual gross margin.
  • How are feed quantities determined?
    Feed quantities are determined using corn equivalents (energy) and soybean meal equivalents (protein) based on the producer’s ration to produce the amount of milk insured. Producers also have the option of using standard feed rations. 
  • What are the benefits of LGM-Dairy?
    • Convenience: Producers can sign up for LGM-Dairy 12 times a year and can cover one through 10 months of their margin each time
    • Customization: LGM-Dairy can be tailored to fit any size dairy farm and for any month or months of the year.
    • Bundled Option Insurance: This insurance is similar to buying both a call option to limit higher feed costs and a put option to set a floor on milk prices.
  • How much milk can I insure?
    Producers can insure any amount of milk up to 24 million pounds per insurance period or year in which they have the adequate amount of dairy cows to produce.
  • When can I obtain coverage?
    Insurance coverage begins one full month after the sales closing date; therefore, no milk can be insured the first month following the sales close date. LGM-Dairy is sold the last Friday, that is a business day, of every month with the sales period beginning at 5:00 p.m. on Friday and ending at 8:00 p.m. the following day. LGM-Dairy can be purchased from a licensed GreenStone crop insurance agent that is LGM certified.
  • How much does LGM-Dairy cost?
    Premiums vary depending on market prices for the gross margin guarantees, number of months that are insured in an insurance period, and deductible level. Premiums also vary depending on market prices and contract specifications. Subsidies for premiums are available to those purchasing two or more months of insurance in each sales close.