Small Town News
Dairy publication gives producers LGM insurance information
Email
Print
Tweet
CopyA new South Dakota State University publication can help dairy producers who have questions about Livestock Gross Margin (LGM) insurance.
SDSU Fact Sheet 960, "Livestock Gross Margin for Dairy Producers, " is available online at this link: agbiopubs.sdstate.edu/articles/FS960.pdf. Or ask for it at your county extension office.
South Dakota Cooperative Extension Risk and Business Management Specialist Matthew Diersen co-authored the publication with extension associate Tia McDonald. The authors explain how dairy producers could use LGM to manage adverse price changes from milk and feed.
The four-page publication defines LGM and explains its benefits, including the facts that it can fit operations of varying size and that the product does not lock prices in such a way that upside potential is reduced.
The publication's multiple charts and diagrams explain the use of LGM and make comparisons to the use of options in various risk-management scenarios for dairy farmers.
It also includes several examples of formulas that compare changing milk and feed prices and how LGM fits into these formulas.
Copyright 2010 Hutchinson Herald, Menno, South Dakota. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from SmallTownPapers, Inc.
© 2011 Hutchinson Herald Menno, South Dakota. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.
More from Hutchinson Herald