Gross margin is defined as the market value of milk produced minus feed costs. Futures prices on Chicago Mercantile Exchange (CME) for milk, and Chicago Board of Trade (CBOT) for corn and soybean meal are used to compute the gross margin. The program covers the difference between the computed (guaranteed or expected) gross margin and the actual gross margin. If the actual gross margin is smaller than the expected gross margin, the LGM-Dairy program makes a payment at the end of the period.
There is a short window for producer sign up each month on the last business Friday. The sales period starts after the close of markets and ends at 8 pm the following day.
LGM-Dairy insurance can be purchased any month of the year for one month up to10 months. The first few months after purchasing the insurance are not included in the coverage. The premium for the insurance is determined by USDA.
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NH Department of Agriculture, Markets and Food
Mailing: PO Box 2042, Concord NH 03302 -2042
Physical: 25 Capitol Street, Second Floor, Concord, NH 03301
(603) 271-3551 | fax: (603) 271-1109