Livestock Gross Margin Insurance for Dairy Cattle
This section of our website provides information concerning the
Livestock Gross Margin for Dairy (LGM-Dairy) program made available by
Risk Managment Agency of
USDA. The site will be under construction over the next few months
as new information becomes available and related new materials are
added. Please come back often to see what's new.
As with other sections of this website by clicking on an active link, you may generate an expanded menu. To make this menu disappear, click on the link again. If you have material that you think you would find useful please contact Prof. Brian W. Gould with your suggestions.
The material contained within this site is for informational and research purposes only. The official website concerning material related to the Livestock for Gross Margin for Dairy program is the USDA Risk Management Agency website (http://www.rma.usda.gov).
- Sign-up for the LGM-Dairy Mailing
- If you are interested in recieving notification of new LGM-Dairy materials, software upgrades, new data, etc., click here if you want to be placed on our LGM-Dairy Mailing List
- List of LGM-Dairy Providers
- Background Material Made Available by
This is a collection of information provided by USDA as to introduce the LGM-Dairy program
- A Powerpoint File Showing Program Changes Effective with the Dec. 2010 Contract
- LGM-Dairy: Program Changes Effective with the July 2009 Contract
- LGM-Dairy Fact Sheet, June 2010
- LGM-Dairy: Frequently Asked Questions
- LGM-Dairy: How Are Premiums Calculated?
- LGM-Dairy: Underwriting Rules
- LGM-Dairy: Handbook (#20080)
- LGM-Dairy: Commodity Exchange Endorsement
- LGM-Dairy: Basic Provisions, Terms and Conditions
- LGM-Dairy: Technical Documentation:
- LGM-Dairy: June 2, 2008 Program Announcement
- LGM for Cattle RMA Website
- RMA Summary of Business Website:
- Supporting Software
LGM-Dairy Analyzer (V 2.0)
This is the version of our LGM-Analyzer that incorporates the changes to the LGM-Dairy program effective with the Dec. 2010 contract offering. Similar to version 1.0, this version contains the LGM-Dairy Premium Estimator as well as the Least-Cost Optimizer programs. In addition, we have incorporated a beta version of a Bundled Options strategy that allows for a comparison of the costs (not including broker fees) with LGM-Dairy for approximately the same level of protection. Note: This program can be used for analysis of both upcoming and historical LGM-Dairy contracts. Feedback would be appreciated.
- LGM-Analyzer (V2.0) Tutorial Video
- A copy of a Journal of Dairy Science article describing the Least Cost Optimizer component of the LGM-Dairy Analyzer is available.
- Income Over Feed Cost Estimator (Web-Based).
- Income Over Feed Cost Estimator (Spreadsheet Based).
- Speadsheet-Based Grain/Concentrate/Forages Feed Conversion Program (Source: 1995 Dairy Reference Manual)
- RMA's Premium Calculator
- Web based Grain/Concentrate Converter
- Web based Feed-Equivalent Calculator based on the National Resource Council (2001) Nutrients Requirements of Dairy Cattle Publication by Valvekar, Cabrera, Wattiaux and Gould, 2010
- User's Manual for the above software system.
- LGM-Dairy Analyzer (V 2.0)
- Underlying Data
This is a collection of data used in the implementation of LGM-Dairy
- Extensive Grain/Concentrate/Forages Feed Conversion Rates (Source: 1995 Dairy Reference Manual)
- Feed Conversion Rates As Specified in the RMA Supporting Material
- Dairy Reference Manual: Use of Feed Conversion Factors
- Futures and Options Months Used Depending on Month Insurance is Purchased
- Listing of Year and Month Specific Corn and Soybean Meal Futures and Options Contracts Used Depending on Month Insurance is Purchased
- Dates Used to Calculate Expected Prices Depending on Month Insurance is Purchased
- Class III Actual Price Measurement Dates: 1998-2009
- Actual Corn, Soybean Meal and Class III Prices
- Expected Corn and Soybean Meal Prices: 1977-2009
- Expected Class III, Corn and SBM Prices: 2000-Current
- Historical Simulation Data for Premium Calculation
- Nutrient National Research Council's Nutrient Composition of Feeds publication (PDF)
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- Additional Material Explaining
This section contains background material related to LGM-Dairy
- USDA's Livestock Gross Margin Insurance for Dairy: What is it and How Can it be Used for Risk Management by Brian W. Gould and Victor E. Cabrera, Univ. of Wisconsin-Madison, Sep. 2011
- Two 1-hour videos reviewing the use of LGM-Dairy for Revenue Risk Managment
- Hour 1: Introduction to LGM-Dairy, October 2011
- Hour 2: Use of the UW LGM-Analyzer System for Contract Design, October 2011
- LGM-Dairy: A Risk Managment Tool for Small and Large Dairy Farms , by B.W. Gould and V.E. Cabrera , University of Wisconsin-Madison, June, 2011
- Managing the Newly Created LGM-Dairy Insurance Under Seasonal Climate Variability, by V.E Cabrera and Daniel Solis, University of Wisconsin-Madison, June 2008
- Livestock Gross Margin for Dairy, a two-page/three-fold brochure, June 2009
- PowerPoint Presentations Given at 3-Hour LGM-Dairy workshops
- PowerPoint Presentations and Agenda for 6-Hour LGM-Dairy Workshops, June 2009
- A PPT File Showing The Relative Costs of Use of a Bundled Options Strategy Versus LGM-Dairy With Some Simplifying Assumptions, May, 2009
- Penn State Staff Paper Comparing LGM-Dairy with Other Risk Management Alternatives (An Introduction), June, 2009
- Presentation at the 2009 Agricultural and Applied Economics Association Annual Meeting Livestock Gross Margin Insurance for Dairy Cattle: An Analysis of Program Performance and Cost under Alternative Policy Configurations, July 29, 2009