Protect Cattle Profits with Livestock Gross Margin Insurance

Q: How does LGM differ from Livestock Risk Protection (LRP)?

LRP covers market price declines. LGM covers margin loss caused by both cattle price drops and feed cost increases, offering broader protection.

Q: How often can policies be purchased?

LGM policies are available for purchase each Thursday and can cover up to 11 months.

Q: What data is used for LGM calculations?

Futures prices for live cattle, feeder cattle, and corn are used to determine expected and actual gross margins.

Q: Can small operations use LGM?

LGM is scalable for both small and large producers. Coverage can be tailored to specific herd sizes and feeding operations.

Q: Does LGM require actual feed purchases?

Coverage is based on national price indexes, not actual feed transactions, which keeps your paperwork simple.

Simple Protection for Your Cattle with Livestock Gross Margin Insurance

Markets fluctuate fast. When feed costs rise, cattle prices fall, and producers are left facing margin pressure that can be tough to recover from.. Mandy can help you apply for Livestock Gross Margin (LGM) insurance: a program built to protect your net income by locking in margins efficiently.

LGM combines elements of feed and cattle price protection into one streamlined policy. Instead of tracking separate futures contracts, LGM simply calculates the margin between your feed and cattle prices for you. It’s a practical, cost-effective way to manage risk with ease.

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LGM Coverage Your Minnesota Farm Deserves

At Harvest Shield Insurance Agency, our knowledge stems firsthand from our agricultural experience. We understand what producers face every day. Our focus is on helping each operation build and sustain financial stability.

Personalized Strategy: Mandy studies your farm’s setup, including feed sources, finishing cycles, and marketing goals, to match the right LGM plan to your operation.
Transparent Communication: You receive straight answers about coverage options, costs, and outcomes. Mandy’s goal is to remove confusion and help clients make confident decisions.
Agriculture-First Focus: Unlike general agencies or banks, we focus on agricultural producers. Mandy knows which programs and policies are most effective for Minnesota farmers.

Tired of Cookie-Cutter Farm Insurance?

Livestock Gross Margin (LGM) insurance gives cattle producers like you a way to protect their gross margin, which is essentially the difference between revenue from cattle sales and feed costs. It replaces multiple futures contracts with one simple policy.

LGM uses a simple formula:

Live Cattle Price – Feeder Cattle Price – Corn Price = Insurable Gross Margin

By insuring this margin, you reduce exposure to swings in feed and market prices. Policies can be purchased every Thursday for an 11-month coverage period.

You can select between two policy types:

Yearling Finishing Operation

Designed for operations buying heavier feeder cattle with shorter finishing periods.
Calf Finishing Operation

Suited for producers purchasing lighter calves with longer finishing timelines.

Each policy adjusts for finishing weights, feed input needs, and futures contract months. LGM insurance allows you to manage the “Cattle Crush” efficiently, protecting profit potential while freeing up time for what matters most, running the operation.

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Don’t put your farm’s future on the line.

Let’s find a farm insurance plan that fits you and your land, right here in Central Minnesota. Contact Mandy today to get started.

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Questions Minnesota Farmers Ask

What is Livestock Gross Margin insurance?

It’s an insurance program that protects your net income margin as the producer. Net income is the difference between cattle selling prices and feed costs.

How does LGM differ from Livestock Risk Protection (LRP)?

How often can policies be purchased?

What data is used for LGM calculations?

Can small operations use LGM?

Does LGM require actual feed purchases?

Livestock Gross Margin (LGM)