The United States Department of Agriculture has made another $1 million in subsidy money available for Livestock Gross Margin-Dairy insurance, says Ron Mortensen, with Dairy Gross Margin, LLC.
“The next time to buy LGM-Dairy will be July 31, 2015. We could expect additional funds for the August and September sales periods,” he says. “The additional sales periods will be August 28, 2015 and September 25, 2015. Full annual subsidy funding will be available for the October 30, 2015 sales period.”
Dairy farmers who have not signed up for the Dairy Margin Protection Program are eligible to use LGM-Dairy, but they cannot use both. “If you start using LGM-Dairy past January of 2016, you must stay with LGM-Dairy for 2016. The signup and reallocation deadline for MPP is September 30, 2015,” notes Mortensen.
He adds: “Margins have slipped over the last few months. The 10-year rankings are near 50%, meaning margins are near the average for the past 10 years. The five-year rankings are near the low end of the past 5 years.”
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