Library

  • Open in new window

    Livestock Gross Margin Insurance Dairy Cattle

    (October, 2015)
    Summary

    The Livestock Gross Margin Insurance Plan for Dairy Cattle (LGM-Dairy) provides protection when feed costs rise or milk prices drop and can be tailored to any size farm. Gross margin is the market value of milk minus feed costs. LGM-Dairy uses futures prices for corn, soybean meal, and milk to determine the expected gross margin and the actual gross margin. LGM-Dairy is similar to buying both a call option to limit higher feed costs and a put option to set a floor on milk prices.

    Views: 511

    Go to Item

    Bookmark

  • Details

    Organization
    		 USDA Risk Management Agency
    Publisher
    		 United States Department of Agriculture
    Published
    		 October, 2015
    Material Type
    		 Written Material

  • Filed Under

    1. Business Management
    2. Insuring the Farm
Return