Livestock Gross Margin (LGM) insurance — available for both dairy and cattle operations — is seeing a few notable updates for Reinsurance Year (RY) 2027. Here’s a quick rundown of what’s changing.
Concurrent Coverage with DRP and LRP
For RY2027, LGM can now be used alongside other dairy and livestock insurance programs during the same coverage period. LGM-Dairy can now be paired with DRP, and LGM-Cattle can now be paired with LRP, giving producers the ability to layer coverage tools rather than having to choose between them.
The key rules to know: both policies must be held with the same Approved Insurance Provider (AIP), the combined insured amount across both programs cannot exceed actual production or marketings, and the change only applies to coverage purchased on or after July 1, 2026.
For a full breakdown of how concurrent coverage works, check out our blog post here.
Enhanced Subsidies for Beginning Farmers and Ranchers
Beginning farmers and ranchers will see improved premium subsidies under LGM starting in RY2027. Previously, beginning farmers received a flat 10% subsidy increase for their first five years. The new tiered structure provides enhanced subsidies for five more years with more front-loaded support, with the largest benefit in the earliest, most financially vulnerable years:
- Years 1-2: 15% additional subsidy
- Year 3: 13% additional subsidy
- Year 4: 11% additional subsidy
- Years 5-10: 10% additional subsidy
Updated Weight Limits and Share Requirements for LGM-Cattle
RY2027 brings several meaningful updates specific to LGM-Cattle, expanding the program’s flexibility for producers operating at heavier weights and clarifying ownership requirements.
- Higher overall max weight: The maximum weight for LGM-Cattle is increasing to 1,800 lbs.
- Higher target weights for live cattle: The maximum allowed target weight is increasing from 15 to 18 cwt for yearling finishing operations and from 13 to 16 cwt for calf finishing operations.
- Higher target weights and new spread limits for feeder cattle: The maximum allowed target weight for feeder cattle is increasing from 9 cwt to 12 cwt for yearling finishing operations. In addition, the difference between target live cattle weight and target feeder cattle weight cannot exceed 6 cwt for yearling finishing operations and 10 cwt for calf finishing operations.
- Updated ownership requirements: The definition of “share” for LGM-Cattle now requires that producers own the calves for a minimum of 5 months for yearling finishing operations and 8 months for calf finishing operations.
Cattle Inventory Report Closes LGM-Cattle Sales
LGM-Cattle sales will also be suspended on days when the USDA Cattle Inventory report is released. Published on a biannual basis, the report release dates will be days when no new LGM-Cattle coverage is available for purchase.
These changes take effect for RY2027, which starts July 1, 2026. Contact HighGround for details on how these updates apply to your specific operation. For a side-by-side look at all the RY2027 changes, download our one-page cheat sheet covering DRP, LRP, and LGM.
