Kansas LGM Insurance. Your Margin Is Protected.
LGM insurance protects Kansas cattle producers against shrinking gross margins. With major feedlots and a large cow-calf sector, Kansas operations need margin protection when feed costs rise and cattle prices fall.
Kansas Feedlot Margins Are Tight. LGM Protects Them.
Kansas is one of the top cattle feeding states in the nation. With major feedlots in western Kansas and stocker operations across the Flint Hills, the margin between fed cattle prices and feeder cattle plus feed costs determines profitability. When that margin shrinks, losses accumulate fast.
LGM uses CME futures prices to guarantee your gross margin. For Kansas feedlot operators, this means protection against the spread between live cattle prices and the combined cost of feeder cattle and corn. Premiums are federally subsidized up to 50%.
Kansas cattle operations — from Flint Hills stockers to western Kansas feedlots — depend on tight margins. LGM provides a guaranteed floor under your gross margin, protecting against the double hit of rising feed costs and falling cattle prices.
Get a LGM Quote →Can your Kansas operation absorb a major margin squeeze?
LGM insurance guarantees a floor under your gross margin — so when feed costs rise or livestock prices drop, your operation stays profitable. Federally subsidized. Surprisingly affordable.
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LGM Coverage Through Brawner
LGM protects your gross margin using CME futures prices — here's how the key components work for Kansas cattle producers.
LGM for Cattle
LGM-Cattle protects against loss of gross margin — the market value of fed cattle minus feeder cattle and feed costs. Available for calf-finishing (550 lb initial, 1,150 lb market) and yearling-finishing (750 lb initial, 1,250 lb market) operations. Coverage spans an 11-month rolling insurance period.
LGM for Swine
LGM-Swine protects against loss of gross margin — lean hog market value minus corn and soybean meal feed costs. Available for farrow-to-finish and feeder pig-finishing operations. Coverage spans a 6-month insurance period with weekly sign-up available every Thursday.
Gross Margin Guarantee
The gross margin guarantee is locked in at sign-up using CME futures prices. If the actual gross margin at the end of the insurance period is below the guarantee (minus your deductible), you receive an indemnity for the difference. No individual production records required.
Deductible Options
For cattle, deductibles range from $0 to $150/head in $10 increments. For swine, $0 to $20/head in $2 increments. Higher deductibles mean higher premium subsidies (up to 50%) and lower out-of-pocket costs — choose the level that matches your risk tolerance.
CME Futures Based
Expected and actual gross margins are calculated using CME futures prices for live cattle, feeder cattle, lean hogs, corn, and soybean meal. Prices are updated daily. The price you receive at your local market is not used in the calculations — coverage is based on futures markets.
Federal Premium Subsidy
LGM premiums are federally subsidized from 18% to 50% depending on your deductible level. A $0 deductible gets 18% subsidy; the maximum deductible gets 50% subsidy. You must have target marketings in at least two months to qualify for subsidies. Premium is due at end of coverage.
Target Marketings
You choose the months when you plan to sell your livestock and how many head per month. These "target marketings" determine your coverage and premium. LGM insures the aggregate gross margin across all your target marketing months for the insurance period.
Weekly Sign-Up
LGM is sold every Thursday when coverage prices are posted on the RMA website. The sales window opens when markets close Thursday and closes at 9:00 AM Central Time the next day. You can sign up weekly throughout the year — no annual enrollment deadline like crop insurance.
Let's build your LGM policy.
We help you select the right deductible, target marketings, and coverage months for your cattle or swine operation.
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