Between today and tomorrow, Oct. 28-29, Pennsylvania swine producers will have their first-ever opportunity to enroll in Livestock Gross Margin (LGM) insurance. The LGM insurance will protect swine producers against unexpected declines in the gross margin, or market value in both commercial and private sales-for-slaughter, minus feed costs. This type of risk management has never before been available to Pennsylvania's swine producers, and the aim is to assist producers in remaining viable through difficult economic times.
Under LGM insurance, producers will receive loss payments when actual margins fall below expected margins. The market and actual values of swine (minus feed costs), using the Chicago Mercantile Exchange futures and actual prices, will determine the expected and actual margin values.
Read the PA Dept. of Agriculture Press Release here.
Access a list of crop insurance agents licensed for this program here.
Written/Posted by Tanya J. Cramoy, Research Assistant