LGM insurance: cover the cattle-feed margin.

Livestock Gross Margin is a USDA-administered policy that insures the spread between fed cattle value and feed cost over your coverage period. The premium is subsidized. Settlement runs against CME futures. Nothing is owed during the policy.

Sign-up closes Friday at 8:25 Central.

LGM sign-up opens Thursday and closes Friday morning at 8:25 Central. Want a quote run before next week's deadline? Send us your head count and target marketing month by Thursday afternoon.

Insure the spread between cattle and feed.

Buying a Policy

Pro Ag Typically uses LGM insurance to create a price floor while providing some corn coverage. Producers can sign up for LGM insurance every week on Thursdays, but the signup must be completed no later than 8:25 am CST on Fridays.

Your Choices

Number of head to insure
Months you want coverage
Deductible level - Producer has the option to choose a deductible anywhere from $0 to $150 per head for cattle. We frequently use the $70
Calf Finishing or yearling finishing option

rEQUIREMENTS

Must have head covered for a minimum of two months to qualify for subsidy discount.
Cattle must be sold in the chosen month with a grace period of 15 days before and after. Coverage months with LGM must not overlap with LRP coverage in the same month.

Advantages

Low cost price floors
a cattle $70 deductible costs less than LRP insurance
Policy settles against futures, not cash
No Margin Requirements
You don't have to pay a premium until the policy expires.

Understanding margin and prices

Crush Margin

The crush margin, or spread between the market value of fed cattle and feed costs, we use the following values:

550-pound feeder cattle
52 bushels of corn per head
1,300-pound finishing weight

Expected Margin

Expected margin when coverage is placed is set based on the futures market close for the effective date.

Actual cattle prices

Cattle settle as a 3-day average of the futures market

For contract months, the average is 3 days prior to the first notice day
For non-contract months, the 3-day average is set during the 3 trading days prior to the end of the month.

Pricing Timelines

For calf finishing, actual prices are set at three separate times.

For feeder cattle, 8 months prior to cattle marketings.
For corn, 4 months prior to cattle marketings.
For cattle, during the month listed for marketings.

Apr 16, 2026

Insurance

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Volatility is nothing new in the cattle industry. Feed costs, feeder prices, and fed cattle values all move independently, and when those moves...

Get an LGM review before Thursday

Send a head count, target marketing month, and where you are on corn. We will run the math and call you back before the Friday cutoff.