RMA Approves Livestock Gross Margin Protection Updates for 2022 Crop Year

The Livestock Gross Margin (LGM) program has seen an increase in participation (approximately 103% from 2019 to 2020), and RMA has taken notice by providing policy expansions for 2022. LGM is available for cattle, dairy and swine producers and provides protection against loss of gross margin (market value of livestock minus feed costs). The newly implemented changes include allowing producers to purchase coverage on a weekly basis, which enables more effective risk management versus the previous monthly timeframe. RMA also included additional clarification as to when producers may seek arbitration. See the additional RMA policy changes.