LGM Dairy Insurance

Dairy Insurance providers in Delaware, Maryland, and Virginia

Risk management tool for dairy producers. LGM Dairy offers:

Financial Protection
Flexibility
Insure some or all of your milk
    21 deductible options
    * 12 times to buy a year
    * 1 to 10 months coverage

Enrollment period is the last business Friday of each month.

FACTS ABOUT DAIRY GROSS MARGIN INSURANCE

  1. LGM Dairy Insurance covers milk sold for commercial or private sale primarily intended for human consumption from dairy cattle.
  2. LGM Dairy insurance does not protect against a milk production loss or unexpected changes in feed rations.
  3. The insurance does provide against unexpected declines in gross margins (market value of milk minus feed costs) on target quantity of marketed milk.
  4. Enrollment periods occur the last business Friday of each month and end at 8:00 p.m. the next day. The LGM Dairy crop year (July 1 thru June 30) includes 12 sales closing dates. Producers purchase an insurance period within the crop year. The first month of the insurance period is a waiting period (lag month) with no coverage.
  5. Any or all expected milk of the last 10 months of each insurance period can be insured (insured months within an insurance period must be consecutive)
  6. Maximum milk enrollment is 240,000 Cwts. annually.
  7. Coverage begins one full calendar month plus three days following the Sales Closing Date.
  8. Producers can choose a deductible between $0 to $2.00 per cwt (in $.10 increments). The deductible applies to all target marketings for the insurance period.
  9. LGM premium is due at the end of the coverage period. 
  10. LGM policies are continuous and will remain in effect until cancelled in writing. Although the policy is continuous, each insurance period purchased expires at the insurance period’s end date.
  11. Policy holders must complete target marketings reports (estimated quantity of milk they intend to sell during each coverage period)by the applicable sales date to be eligible for coverage in the next insurance period.
  12. RMA tracks the total quantity of the commodity a policyholder or SBI insures using their tax identification number.
  13. Farmers who insure 10 consecutive months will pay less per month than farmers who insure fewer months.  Farmers who insure 100% of their margin will pay more than those who take a deductible.
  14. Purchasing Dairy LGM insurance provides a safety net for a fixed premium ant the producter does not forfeit upside gains (profits).
  15. Dairy LGM  polcies can be tailored to any farm size.
  16. Dairy LGM offers financial protection and flexibility (12 times to buy a year), 21 deductible options, some or all of your milk and 1 to 10 months coverage).
  17. Premium subsidy will be available for those policies that insure muliple months during the insurance period.  The subsidy amount will be determined by a dollar deductible selected by the policyholder (to range from $0-$2 in $.10 increments). Policyholders choosing a $0 deductible will receive a lower premium subsidy (18%) and those choosing the highest deductible of $2 will receive a higher premium subsidy (50%).
  18. Final premium is determined by RMA.  Quotes are used only as an estimated premium.  Agent does not have authority to bind coverage.