Livestock Gross Margin Insurance for Dairy Cattle
This section of our website provides information concerning the
Livestock Gross Margin for Dairy (LGM-Dairy) program made available by
the
Risk Managment Agency of
USDA. The site will be under construction over the next few months
as new information becomes available and related new materials are
added. Please come back often to see what's new.
As with other sections of this website by clicking on an active link,
you may generate an expanded menu. To make this menu disappear,
click on the link again. If you have material that you
think you would find useful please contact Prof. Brian W. Gould with your
suggestions.
The material contained within this site is for informational and
research purposes only. The official website concerning material
related to the Livestock for Gross Margin for Dairy program is the USDA
Risk Management Agency website (http://www.rma.usda.gov).
- Sign-up for the LGM-Dairy Mailing
List
- If you are interested in recieving notification of new LGM-Dairy materials, software upgrades, new data, etc. send an email to Prof. Brian W. Gould (bwgould@wisc.edu)
- Background Material Made Available by
the RMA
This is a collection of information provided by USDA as to introduce the LGM-Dairy program
- LGM-Dairy: Frequently Asked Questions
- LGM-Dairy: Step-by-Step Instructions on How to Calculate Premiums
- LGM-Dairy: Underwriting Rules
- LGM-Dairy: Handbook (#20080)
- LGM-Dairy: Commodity Exchange Endorsement
- LGM-Dairy: Basic Provisions, Terms and Conditions
- LGM-Dairy: June 2, 2008 Program Announcement
- LGM for Cattle RMA Website
- Supporting Software
This is a collection of spreadsheet and other software used to exemplify the use of LGM-Dairy
- University of Wisconsin's
LGM-Dairy Premium Calculator: A
spreadsheet model that can be used undertake "what-if" analyses as to
premium levels for alternative insurance program participation
configurations. The above is an archive file that contains two
spreadsheet files. After downloadingvia your web-browser,
click on this file with your file manager to access the component
files From Aug. 2008 - Present, actual RMA simulated data used
in premium calculations are available below. Prior to Aug.
2008, our own simulated data is used for premium
calculation.Note: This program file
DOES NOT
contain any data. You must download the data listed below.
When you start this application reply YES to the question "Replace Existing Definition of...?" as this updates the months of available data.
Important: To keep your system up to date you MUST DOWNLOAD the latest version of the Expected Price File. Make sure you place this file in the same location as the UW LGM-Dairy Premium Calculator
To use the above software system download some or all of the following simulated price data files necessary to estimate your premiums. These files contain an archive of Simulated Class III, Corn Grain and Soybean Meal Prices Used to determine LGM-Dairy premiums. Make sure you place these files in the same location as where the UW LGM-Dairy premium calculator is located.
Data Files for Premium Calculations2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr May May May May May May May May May May Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec All All All All All All All All All All IMPT: You Must Download Latest Expected Prices File
Important: The following is a PDF File Describing the Software System, Known Bugs and Operation Instructions for the UW LGM-Dairy Premium Calculator spreadsheet model. Please read this file!
- Extensive Grain/Concentrate/Forages Feed Conversion Rates (Source: 1995 Dairy Reference Manual)
- RMA's Premium Calculator
- University of Wisconsin's
LGM-Dairy Premium Calculator: A
spreadsheet model that can be used undertake "what-if" analyses as to
premium levels for alternative insurance program participation
configurations. The above is an archive file that contains two
spreadsheet files. After downloadingvia your web-browser,
click on this file with your file manager to access the component
files From Aug. 2008 - Present, actual RMA simulated data used
in premium calculations are available below. Prior to Aug.
2008, our own simulated data is used for premium
calculation.Note: This program file
DOES NOT
contain any data. You must download the data listed below.
- Underlying Data
This is a collection of data used in the implementation of LGM-Dairy
- Milk and Corn Basis by Month and State
- Extensive Grain/Concentrate/Forages Feed Conversion Rates (Source: 1995 Dairy Reference Manual)
- Feed Conversion Rates As Specified in the RMA Supporting Material
- Dairy Reference Manual: Use of Feed Conversion Factors
- Futures and Options Months Used Depending on Month Insurance is Purchased
- Listing of Year and Month Specific Corn and Soybean Meal Futures and Options Contracts Used Depending on Month Insurance is Purchased
- Dates Used to Calculate Expected Prices Depending on Month Insurance is Purchased, 2000-2009
- Class III Actual Price Measurement Dates: 1998-2009
- Actual Corn and Soybean Meal Prices: 1976-Current
- Expected Corn and Soybean Meal Prices: 1977-Current
- Expected Class III Prices: 2000-Current
- Actual Class III Prices: 2000-2008
- Nutrient National Research Council's Nutrient Composition of Feeds publication (PDF)
- Additional Material Explaining
LGM-Dairy
Background Material Related to LGM-Dairy
- USDA's Gross Margin Insurance Program for Dairy: What is it and Can it be Used for Risk Management (Final Version), by B.W. Gould, P. Mitchell and V. Cabrera, Univ. of Wisconsin, Aug. 2008
- Livestock Gross Margin Insurance for Dairy: A New Risk Management Tool Available for Dairy Producers , by M. Valvekar, V. Cabrera and B.W. Gould, Univ. of Wisconsin, August 2008
- 11-Panel Poster Reviewing the LGM-Dairy Program, by V. Cabrera, October 2008
- Livestock Gross Margin (LGM) for Dairy, by Bruce Babcock, CARD, Iowa State University, Sept. 2007
- Managing the Newly Created LGM-Dairy Insurance Under Seasonal Climate Variability, by V.E Cabrera and Daniel Solis, University of Wisconsin-Madison, June 2008
- A 2-page Fact Sheet Describing the LGM-Dairy Insurance Program, by Dairylea Cooperative, July 2008
- A 2-page Example Showing the Use of the LGM-Dairy Insurance Program, by ARMtech Insurance Services, July 2008
- Livestock Gross Margin (LGM) for Dairy, by K. Bodley and K. Rossini, July 2008
- Livestock Gross Margin for Dairy, a two-page/three-fold brochure, Sept. 2008
- Presentations Given at the Eastern Wisconsin Farm Managment Update Conference, September 12, 2008
- PowerPoint Presentations Given at the Professional Dairy Producers of Wisconsin Managment Workshop, November 20, 2008
