Next LGM-Dairy policy sale is Nov. 22

The next Livestock Gross Margin-Dairy (LGM-Dairy) sales period begins Friday afternoon, Nov. 22, according to Alan Zepp, Risk Management Program coordinator with Pennsylvania’s Center for Dairy Excellence. LGM-Dairy will be offered for sale by crop insurance agents, with producers eligible to purchase margin insurance for a 10-month period (January-October 2014), or any combination of months during that period.

The January-October 2014 average of expected margins is $13.96/cwt., above the 3-year average for the January-October period of $13.35/cwt.; still more than $1.50/cwt. above the 5-year average actual margin of $12.23/cwt.; and above the 10-year average of $12.72/cwt. 

The premium for a $0 deductible policy to insure a $13.98/cwt. margin is estimated at 52¢/cwt. (12¢/cwt. to insure a $12.98/cwt. margin for a $1 deductible policy).

Looking at market fundamentals, Zepp said average feed prices will be lower in 2014, likely impacting milk production and prices. Margins and expected margins remain strong, although declining milk prices could have an impact. Exports remain strong. Based on current conditions, Class IV milk prices will continue to be the "driver" of producer milk prices into January 2015.

“Protecting Your Profits” information and a recorded podcast will be posted at The website also adjusts LGM-Dairy estimated margins weekly, based on updated futures prices. For further information, producers can contact Zepp at or phone 717-346-0849.