Cameron S. Thraen
The Ohio State University Extension
State Specialist Dairy Markets and Policy
Department of Agricultural, Environmental and Development Economics
The Ohio State University
By now you may have heard of a newly available insurance product available to dairy producers, termed ‘Livestock Gross Margin Insurance’, or LGM-Dairy. This article explore this product and help dairy producers decide if this is a product they may be interested using in their profit and risk management tool-kit. Simply put, LGM-Dairy is an insurance product which, in exchange for a premium paid by the buyer, provides a payment in the event that actual gross margin is less than anticipated gross margin at the end of the insurance contract period. Gross margin is calculated as the difference between expected gross revenue and expected purchased feed cost.
Click here to access the LGM Dairy Basics 10 Page Summary
Click here to access Dr. Thraen’s LGM website at
http://aede.osu.edu/programs/ohiodairy/LGM_Dairy.htm