Livestock and Special Events Insurance Products

Here you will find a more detailed description of our livestock and special events products.  If you find that you have additional questions please feel free to contact us by clicking here.  

Livestock Gross Margin (LGM)



LGM Dairy

The Livestock Gross Margin for Dairy Cattle Insurance Policy provides protection against the loss of gross margin (market value of milk minus feed costs) on the milk produced from dairy cows

 

LGM for Cattle

LGM provides protection against loss of gross margin (market value of cattle minus feeder cattle and feed costs) on cattle. LGM covers a decline in cattle prices and/or an increase in feed costs and/or an increase in feeder cattle prices.

 

LGM for Hogs

LGM provides protection for the gross margin between the value of insured hogs and the cost of corn and soybean meal. It covers a decline in hog prices and/or an increase in feed costs.

Livestock Risk Protection (LRP)



LRP covers a decline in livestock prices. Coverage prices range from 70-100% of daily livestock prices for swine, fed cattle, and feeder cattle; and 80-95% in 5% increments for lamb. LRP is priced and available for sale continuously throughout the year.  

 

What are the benefits of LRP?

  • Guaranteed Price.

  • No Bid / Ask spread.

  • Limited Basis Risk Coverage.

  • Aggregate cash price used better reflects actual price received.

  • Any number of head can be covered (up to limits).

  • Producer selects the period that fits their risk management plan.

  • Wider range of Target Weights than CME.

  • May be viewed more favorably by lenders than hedging or speculating (derivative products).

  • Subsidized by government

Rain Insurance
 

Policy written for a short term for a specific event susceptible to reduced attendance due to rain such as a festival, concert, rodeo and other outdoor events. This policy is written to indemnify the insured (your organization) for loss of expenses from the event.  This program insures against direct loss to events caused by rainfall. It does not cover any loss to property or from any other peril even though the loss may have occurred in conjunction with the rainfall. 

 

Some of the ground rules include the following:

  • The policy must be written and the premium paid at least fourteen days in advance.

  • The insured period will be for a minimum of three hours and a maximum of eight to twelve hours per day, depending on location. The times of day the coverage begins and ends must be on the application.

  • The rain insurance rates will be quoted for one quarter or one half of an inch of precipitation*.

  • A rain gauge will be set up at the site of the insured event and will be monitored by a company representative or a disinterested third party (as agreed to by the company).

  • Rates are dependent upon the time of year, hour(s) of day or night, and the county in which the event is held.

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