For the first time, dairy producers in 32 selected states will be eligible for livestock gross margin insurance for 2009. The program is being provided by private insurance companies, but is being underwritten by Federal Crop Insurance Corporation. The first sales closing date is August 27, 2008.
The program is a bit complicated. So meetings are starting to be scheduled to explain the program, particularly in the Northeast. Producers are urged to contact their local Farm Service Agency office for more information.
Essentially, the insurance guarantees a gross margin between milk and corn/soybean prices. Producers in eligible states can insure up to 24 million lb. of annual milk production.
For a program overview, go to: http://www.rma.usda.gov/news/2008/05/lgmdairy.html
For frequently asked questions, go to: http://www.rma.usda.gov/help/faq/lgmdairy.html
