Dairy producers can learn about the Dairy Gross Margin insurance program for the 2011-12 fiscal year by joining a Protecting Your Profits conference call Wednesday, Sept. 28. The call runs from Noon to 12:30 p.m.
The program is presented by Pennsylvania Department of Agriculture's Center for Dairy Excellence. Led by Alan Zepp, risk management program coordinator for the center, the 'Protecting Your Profits' series provides a monthly update on what dairy and commodity markets are doing and a historical review of milk margins based on actual commodity prices.
"With the new fiscal year beginning in October, we expect that producers will have the opportunity to include the Dairy Gross Margin program in their risk management plans," says Zepp. "With milk prices and commodity markets changing daily, all dairy farm families should evaluate their risks and have a risk management plan in place for the next 6 to 12 months."
This month's call will include a review of current market conditions, a look at the center's 'Protecting Your Profits' scorecard and an estimate of the expected margins for the Dairy Gross Margin Program in September. Zepp will also explain the status of the program for the Oct. 28-29 sales period. He'll review the status of a dairy gross margin contract purchased in February 2011.
Sign-up for the next round of the Dairy Livestock Gross Margin program is on Oct. 28-29. It may be the only opportunity to protect against margin declines this year, notes Zepp.
LGM for Dairy protects against the loss of gross margin (market value of milk minus feed costs) on milk produced. The upcoming enrollment period is only two days. In brief, it's a monthly dairy risk management tool that covers the difference between projected and actual gross margins (income over feed cost) during a producer-selected number of months for a targeted amount of milk. A loss payment results when the expected gross margin exceeds the actual gross margin.
To register for the call, contact the center at 717-346-0849 or e-mail [email protected]. Once registered, participants will receive call-in information and presentation materials for the call.