Grain Markets Turn to Acreage Data for Direction
Editorial Team
- Grains & Oilseeds
Dairy and livestock insurance resource center
Get the most from your USDA insurance coverage by combining it with StoneX’s proven risk management strategies.
Insurance tools and risk management strategies
Leveraging USDA dairy and livestock insurance programs as a part of a larger risk management strategy helps producers protect revenue, lock in profits and potentially capture upside benefits. During times of high input costs and market price volatility, managing risk is critical. StoneX helps dairy farms and livestock operations effectively manage risk through three powerful insurance tools: Livestock Risk Protection, Dairy Revenue Protection, and Livestock Gross Margin.
Livestock Risk Protection
Customizable risk protection for fed cattle, feeder cattle and swine
Livestock Risk Protection (LRP) enables livestock operations to purchase cattle insurance coverage against adverse changes in the market prices of their cattle – helping them to effectively manage financial performance and profitability.
StoneX’s price-risk management professionals work with you to optimize your LRP coverage, to fit your business operations and needs.
How does Livestock Risk Protection work?
Fed Cattle | Feeder Cattle | Swine |
|---|---|---|
Available in all 50 states throughout the year | Available in all 50 states throughout the year | Available in all 50 states throughout the year |
Producers can insure up to 12,000 head per endorsement / limit 25,000 per crop year | Producers can insure up to 12,000 head per endorsement / limit 25,000 per crop year | Producers can insure up to 70,000 head per endorsement / limit 750,000 per crop year |
Premium is subsidized between 35%-50% depending on coverage level | Premium is subsidized between 35%-50% depending on coverage level | Premium is subsidized between 35%-50% depending on coverage level |
Premium may be paid at the end of the endorsement period | Premium may be paid at the end of the endorsement period | Premium may be paid at the end of the endorsement period |
Insurance periods ranging from 13 weeks to 52 weeks | Insurance periods ranging from 13 weeks to 52 weeks | Insurance periods ranging from 13 weeks to 52 weeks |
Settled to CME national cash price index | Settled to CME national cash price index | Settled to price as reported by Agricultural Marketing Service (AMS) |
Dairy Revenue Protection
Customizable risk management for farms of all sizes
Dairy Revenue Protection (DRP) enables dairy farmers to protect revenue from adverse changes in milk prices, allowing them to lock in profits and protect from financial loss. DRP offers a unique opportunity for dairy farmers to take advantage of current market conditions by working with one of StoneX’s knowledgeable risk management consultants to create a plan that fits any operation.
How does Dairy Revenue Protection work?
Mechanics
- Available in all counties, in all 50 states
- Can be purchased on a quarterly basis
- Uses a combination of Class III and Class IV milk prices as a basis for determining coverage and indemnities
- Available for five (5) quarters out
- Premium is due after the quarter covered
Premium Subsidies
- 90% and 95% Coverage = 44%
- 85% Coverage = 49%
- 80% Coverage = 55%
Livestock gross margin
Livestock Gross Margin (LGM) is a federally reinsured livestock product that provides coverage against the loss of gross or finishing margins due to declining livestock prices or rising feed costs. LGM is determined using futures and options prices with the objective of identifying expected gross margin and actual gross margin. StoneX’s risk management consultants work closely with your business to track these price fluctuations to maximize profits.
How does Livestock Gross Margin work?
LGM for Dairy | LGM for Cattle | LGM for Swine |
|---|---|---|
Provides protection against the loss of gross margin (market value of milk minus feed costs) | Provides protection against the loss of gross margin (market value of cattle minus feeder cattle and feed costs) on fed cattle (yearling and calf) | Provides protection against the loss of gross margin (market value of hogs minus feed costs) |
Available in all counties in all 50 states for the commercial or private sale of milk intended for human consumption | Available in all counties in all 50 states for yearling and calf finishing operations | Available to farrow-to-finish operations, feeder-pig finishing operations, and segregated-early weaned (SEW) operations in all 50 states |
Producers can insure during any 11-month insurance period or year | Producers can insure cattle during any 11-month insurance period and up to 10,000 head per insurance year (July to June) | 6-month insurance period following the sales closing date, with coverage beginning in the second month |
Sold each Thursday after the price guarantee is posted to the RMA site and ends the following day (Friday) at 9:00 AM Central | Sold each Thursday after the price guarantee is posted to the RMA site and ends the following day (Friday) at 9:00 AM Central | Sold each Thursday after the price guarantee is posted to the RMA site and ends the following day (Friday) at 9:00 AM Central |
Insurance coverage begins one month and one day following the sales closing date | Insurance coverage begins one month and one day following the sales closing date | Insurance coverage begins one month and one day following the sales closing date |
Premium is due at the end of the insurance periodDeductible amount available: $0 to $2 per hundred weight in 10¢ increments | Premium is due at the end of the insurance periodDeductible amount available: $0 to $150/head in $10 increments | Premium is due at the end of the insurance period-Deductible amount available: $2 to $20 per head in $2 increments |
Premium subsidy is based on the deductible selected by the producer and ranges from 18% with $0 deductible to 50% with a deductible of $1.10 or greater | Premium subsidy will be based on the deductible selected by the livestock producer. Subsidy will range from 18% with $0 deductible up to 50% with a deductible of $70 or greater or according to the actuarials | Premium subsidy will be based on the deductible selected by the livestock producer. Subsidy will range from 18% with $0 deductible, up to 50% with a deductible of $12 or greater or according to the actuarials |
Want to learn more?
Discuss your insurance and risk management needs with a StoneX professional.
Reasons to get covered by StoneX
Deep agricultural expertise
StoneX boasts over 100 years of agricultural industry experience. From selling eggs door-to-door to becoming one of the nation’s largest commercial grain brokerage firms, StoneX lives and breathes farm culture and environment. Our risk management network’s boots-on-the-ground expertise cultivates a deep understanding of why our clients work the land for a living.
Access to powerful proprietary tools
Each of our insurance products has customizable elements that enable you to tailor your coverage precisely to your operation’s needs. StoneX’s proprietary insurance decision tools allow clients to optimize and compare alternatives. For dairy farmers, our Dairy Revenue Protection Decision Tool (DRPDT) helps identify opportunities and compare coverage options. Insightful hedge maps identify positions and performance levels so that you can make educated decisions quickly and easily.
Award-winning risk management consultants
Pricing, terms and payouts for federal insurance products are the same no matter where you purchase them from. The purpose of each product is also the same—reduce exposure to price risk. Purchasing your coverage through professionals who manage dairy and livestock price risk every day can help you choose coverage as part of a larger risk management strategy that can maximize the overall benefit of your insurance expenditure.
Explore our market coverage
When it comes to market coverage, there are few financial organizations that can match the breadth of StoneX. Explore our markets below.
Boots on the Ground: EU Dairy (Ireland)
Join Liam Fenton, Global Head of the Dairy & Food Group at StoneX, in the countryside of County Cork, Ireland, as he explains the value of getting his boots on the ground on the Fenton family dairy farm, and how leveraging insights gained while growing up on the farm help him advise “from their side of the table.”
Insurance Market Intelligence
Discover more insights
Dive into comprehensive market analysis from StoneX spanning commodities, equities, currencies and more.
Upcoming events
Basic Natural Gas Hedging Virtual Workshop
Webinars|North America|Language: English
June 16 - June 25, 2026
3:00-4:30 p.m. ET
We're thrilled to invite you to the Basic Natural Gas Hedging Virtual Workshop, running from June 16 to June 25, 2026 with six 90-minute sessions. This comprehensive event will cover everything from futures contracts and options to strategic hedging examples. Perfect for professionals eager to deepen their understanding of natural gas market dynamics and technical analysis.
SID Annual Conference
Third party events|North America|Language: English
June 18, 2026
Washington, D.C.
StoneX Payments is proud to sponsor the Society for International Development Annual Conference.
We look forward to engaging with the global development and NGO community on cross border payments.
Visit our booth to connect and share how secure, efficient payment solutions support critical missions worldwide.
Merchandising 101
StoneX events|North America|Language: English
June 23 - June 25, 2026
Whitestown, IN
Join us for this interactive program focused on managing and taking advantage of market volatility using proven price risk management strategies.
You’ll gain a solid foundation of grain merchandising, cash, futures, options, and OTC markets, and will leave with a better understanding of the following topics:
- Introduction to Cash, Futures, Options, and OTC market tools
- Basis, Spreads, Hedging and Hedge Management
- Delivery
- Market Technology
- Utilizing financial tools to develop cash contracts to enhance origination
- Customer Contracts
- Grain Accounting
FAQ
StoneX: We open markets
Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.
Reach
With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
Transparency
As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve, our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
Expertise
From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.
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