Protect Your Profit Margin From Market Shocks

Livestock Gross Margin Insurance

Livestock Gross Margin Insurance – Feed Cost and Price Protection for Cattle, Dairy & Hogs

Livestock Gross Margin (LGM) Insurance provides Iowa producers with protection against lost profits caused by rising feed costs or falling market prices. Whether you're managing fed cattle, producing milk, or raising hogs, LGM helps safeguard the difference between what you earn and what it costs to feed your livestock.

What Livestock Gross Margin Insurance Covers

LGM Insurance is designed to protect the “gross margin”—the difference between the revenue generated by your livestock and the cost of feeding them. It responds to fluctuations in both feed and market prices.

Black silhouette of a bull on a white background.

Cattle Coverage

Protects against declining cattle prices or rising feed and feeder cattle costs. Ideal for producers managing both market volatility and input expenses.

Dairy products: milk carton, cheese block, and egg carton.

Dairy Cattle Coverage

Covers lost gross margin if milk prices drop or feed costs spike. Helps maintain consistent revenue for dairy producers through changing seasons.

Black silhouette of a pig, facing right.

Hog Coverage

Protects the margin between market hog value and the combined cost of corn and soybean meal. Designed for farrow-to-finish and finishing operations.

Why Producers Use LGM

This coverage is ideal for livestock operations with tight profit margins or significant exposure to feed market changes. It complements your market strategies and gives you more control during unstable periods.

  • Customizable Contracts
    LGM policies can be tailored based on your anticipated production and financial goals.
  • Multi-Factor Protection
    Coverage responds to changes in both output prices and input costs—not just one or the other.

Common Questions About LGM Insurance

  • How does LGM differ from LRP?

    LGM protects your gross margin (price minus feed cost), while LRP only protects against market price drops. LGM is often used when feed prices are a major concern.

  • Is LGM only for large-scale producers?

    No. LGM is available for small and mid-size operations too, especially those with consistent production and feed planning.

  • Can I still use futures or options if I have LGM?

    Yes. LGM is compatible with your other risk management strategies and can complement private hedging tools.

Let's Talk About Your Farm’s Future

From feed price spikes to falling markets, your margins deserve protection. AgriPeril helps Iowa livestock producers secure their bottom line with Livestock Gross Margin Insurance—smart coverage that works behind the scenes.