Understanding how the vital components of farming impact an operation is what distinguishes DCIS as an industry leader. Working one-on-one, we develop the most comprehensive risk management plan for every element of a farming operation. That’s why we offer two programs to protect livestock. Livestock Gross Margin (LGM) protects from loss of gross margin, while Livestock Risk Protection (LRP) protects against price declines.

 

 

Livestock Risk Protection
Livestock Risk Protection (LRP) helps protect your livestock operation against declining market prices. It offers many different levels of coverage and periods of insurance to correspond with production, general feed, and marketing practices. Livestock Risk Protection features include:

  • Fed Cattle - Up to 2,000 head per Specific Coverage Endorsement (SCE) and 4,000 head per year
  • Feeder Cattle - Up to 1,000 head per SCE and 2,000 head per year
  • Lamb/Sheep - Up to 2,000 head per SCE and 28,000 head per year
  • Swine - Up to 10,000 head per SCE and 32,000 head per year
  • Quantity - There is no minimum limit to the number of livestock to insure per endorsement.
  • Subsidy - Depending upon the market, LRP can be less expensive at times than the Chicago Mercantile Exchange futures or options as a result of the 13% subsidy.
  • The maximum head per year is tracked during the above stated crop year
  • The LRP policy will automatically renew each crop year if it is not cancelled in writing by June 30; however, this does not apply to Specific Coverage Endorsements
  • A loss payment will be received if the actual ending value is less than the coverage price. The claim form must be submitted within 60 days following the coverage end date.
  • Fed/Feeder Cattle - 70%-100%
  • Lamb/Sheep - 80%-95% (in 5% increments)
  • Swine - 70%-100%


Livestock Gross Margin
Livestock Gross Margin (LGM) helps protect your livestock against potential revenue loss caused by declining prices and increasing feed costs. Additionally, it provides insurance coverage against the loss of gross margin for cattle, swine, and dairy cattle. Livestock Gross Margin features include:

  • Cattle - Up to 5,000 head during any 11-month insurance period and up to 10,000 head per insurance year
  • Swine - Up to 15,000 head during any six-month insurance period and up to 30,000 head per insurance year
  • Dairy Cattle - Up to 240,000 hundredweight of milk during any 11-month insurance period or insurance year
  • There are 12 insurance periods in a calendar year.
  • A government subsidy is offered on Livestock Gross Margin Dairy Cattle.
  • Swine offers a six-month period. 
  • Cattle and Dairy Cattle offer an 11-month period.
  • Coverage begins the 1st day of the 2nd month after the closing month.
  • The sales period for Swine, Cattle, and Dairy Cattle is on the last business Friday of each month until 8:00 p.m. (CST) the following day.
  • The Chicago Mercantile Exchange (CME) determines the actual and expected price guarantees for swine, cattle, milk, corn, and soybean meal.
  • A loss payment will be received if there is a difference in the actual gross margin and the gross margin guarantee. LGM does not insure against death or other loss, or destruction of cattle or swine.
  • Swine-$0 to $20 per head in $2 increments
  • Cattle-$0 to $150 per head in $10 increments
  • Dairy Cattle-$0 to $2.00 per hundredweight in $.10 increments