The Livestock Gross Margin (LGM) Insurance Policy provides protection against both swine prices and the price of feed computed from corn and soybean meal prices. The margin is calculated as a return over feed. The change is that this insurance is now available 12 times a year on the last business day of each month instead of just twice a year.
The next day to purchase LGM will be the last business day in December. ISU Extension has scheduled a workshop at DFS Feeds in Newell on Dec. 20. This over-lunch workshop will be held from 11 a.m. to 2 p.m. and will include presentations by Tom Olsen (ISU) and Dave Stender (ISU) on hog outlook and premium calculation. Leanne Samuelson from Rain and Hail will discuss the insurance mechanics. A session after lunch will include on-the-web price and revenue calculations. A $10 registration fee will include lunch.
The best time to purchase this insurance is when the price of hogs is high, the price of feed is low and there is potential for swings in the market. That is the situation we have this fall, historically high hog prices with huge supply numbers of swine. The current market is based on demand, which could come and go rapidly. Everybody knows the grain markets this fall are nearly half what they were just six months ago. That is not exactly a picture of stability.
For questions, contact the following ISU Extension Specialists: Jerry Weiss, Pocahontas, (712) 334-3103; Dave Stender, Cherokee, (712) 261-6196; Tom Olsen, Storm Lake, (712) 732-5056; Or Brent Moens, DFS Feeds, (712) 272-3396.