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NH Department of Agriculture, Markets, and Food
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Dairy Livestock Gross Margin (LGM-Dairy)

Launched in 2008, the LGM – Dairy program provides dairy producers with protection against declining gross margin on milk production.

cows in the field

Gross margin is defined as the market value of milk produced minus feed costs. Futures prices on CME for a specific time period on milk, and CBOT for corn and soybean meal are used to compute the gross margin. The program covers the difference between the computed (guaranteed or expected) gross margin and the actual gross margin. If the actual gross margin is smaller than the expected gross margin, the LGM-Dairy program makes a payment at the end of the period.

There is a short window each month, last business Friday, when producers can sign up. The sales period starts after the close of markets and end at 8 pm the following day.

The insurance program can be purchased any of the 12 months of the year for as short as one month or for the whole insurance period of 10 months. The first few months after purchasing the insurance are not included in the coverage. The premium for the insurance is determined by USDA.

Fact Sheets and References

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NH Department of Agriculture, Markets and Food
Mailing: PO Box 2042, Concord NH 03302 -2042
Physical: 25 Capitol Street, Second Floor, Concord, NH 03301
(603) 271-3551 | fax: (603) 271-1109