Dairy insurance purchase deadline at hand

Deadlines for the U.S. Department of Agriculture Risk Management Agency’s (USDA-RMA) Dairy Gross Margin Insurance are rapidly approaching, according to West Virginia commissioner of agriculture Gus R. Douglass.

Signup periods are set for Nov. 20-21 and Dec. 18-19 for the program.

The dairy program is part of a larger Livestock Gross Margin (LGM) program and provides protection to dairy producers when feed costs rise or milk prices drop. 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 sold on the last business Friday of each month. Annual premiums are based on individual farm circumstances and deductibles run between 0 and $1.50 per hundredweight. The program covers the difference between the gross margin guarantee and the actual gross margin. It does not insure against dairy cattle death, unexpected decreases in milk production, or unexpected increases in feed use.

For more information, including a premium calculator, visit http://www3.rma.usda.gov.

TAGS: Management
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