Livestock Gross Margin for Swine

Livestock Gross Margin Insurance for Swine was first offered in 2002 as a pilot program in Iowa through the USDA's Risk Management Agency. It was expanded to include several more states for the 2008 crop year that began in July 2007. It provides protection against declines in livestock feeding margins by simultaneously hedging the input costs of corn and soybean meal and the market hog selling price as a bundled option. Essentially, it pays an indemnity when the spread between the swine selling price and soybean meal and corn input prices narrows beyond their insured coverage level.