Consider the following scenario. In July 2026, an insured buys an LGM-Cattle SCE with target marketings of 1,000 head in November 2026. They also buy an LRP-Fed Cattle SCE and cover 1,000 head with November 10, 2026 end date. Under LGM-Cattle rules, their cumulative target marketings for November 2026 are 2,000 head.
They market 1,000 head on October 10, and another 1,000 on November 10, 2026. LGM-Cattle basic provisions state: “You may report as actual marketings in a particular month only sales that occurred not earlier than 15 days prior to the start of the month and not later than 15 days after the end of the month, as supported by dates on packer sales receipts that provide supporting records.” So do their LGM indemnities need to be prorated because they marketed 50% of their cumulative target marketings outside the 15-day buffer?
Short answer: No, they are eligible for full indemnities.
Analysis:
Per LGM-Cattle RY2027 Basic Provisions:
Actual marketings – The total number of slaughter- ready cattle sold by you for slaughter for human or animal consumption in each month of the insurance period and for which you have proof of sale. Actual marketings are
used to verify ownership of cattle.Cumulative target marketings – Target marketings for each specific month in the insurance period, under this and all other livestock insurance plans that insure fed cattle marketings for the same month, summed over all SCEs in all crop years when the month was insurable.
Marketing report – A report submitted by you on our form showing for each month your actual marketings of cattle
insured under this policy. The marketing report must be accompanied by copies of packer sales receipts that provide records of the actual marketings shown on the marketing report. You may report as actual marketings in a particular month only sales that occurred not earlier than 15 days prior to the start of the month and not later than 15 days after the end of the month, as supported by dates on packer sales receipts that provide supporting records.
In 7(c):
For each SCE, if for any month for which you have target marketings your actual marketings are less than 85 percent of the cumulative target marketings for the month, your indemnities will be reduced…
We can colloquially refer to the “15 days prior to the start of the month and not later than 15 days after the end of the month” as a “buffer”. For LRP, the equivalent “buffer” is 60 days before/after the end date, as provided in LRP Basic Provisions 6(a)(2)(i):
To receive an indemnity, you must provide documentation … verifying the sale of all covered livestock during the insurance period or no later than 60 days after the end date…
and 6(a)(3):
If you dispose of or sell your covered livestock more than 60 days prior to the SCE end date, you will not be considered to have an ownership interest in the disposed of or sold livestock.
The critical policy language that governs the resolution of this dilemma is found in the definition of LGM marketing reports, as highlighted above: “A report submitted by you on our form showing for each month your actual marketings of cattle insured under this policy.” In this case, “this policy” is LGM-Cattle, and only 1,000 head are insured under LGM-Cattle. Therefore, the 15-day buffer only applies to 1,000 head. For the other 1,000 head marketed on October 10th, the 60-day buffer under LRP applies.
LGM BP 7(c) rules for prorating indemnities under LGM-Cattle are reflected in PASS Calculations file P24_1:
To calculate Month X Actual Market Amount, the appropriate approach is thus to sum:
- Livestock marketings with sales date ’15 days prior to the start of the month and not later than 15 days after the end of the month’
- For each LRP SCE with end date in the same insurance month, livestock marketings with sales date outside the sales window provided in #1, and up to 60 days before or after the LRP SCE end date; but not to exceed the number of head declared on the LRP SCE.
In the example provided above, actual marketings would be 1,000 head under #1, and 1,000 head under #2, totaling 2,000 head. Market Factor would be equal to 1, and thus LGM indemnities would not be prorated.
Let’s work out through another, more complicated example:
| End Date / Target Month | Target Marketings | |
| LGM-Cattle SCE | November 2026 | 1,000 head |
| LRP-Fed Cattle SCE #1 | November 2, 2026 | 1,000 head |
| LRP-Fed Cattle SCE #2 | November 15, 2026 | 1,000 head |
Cattle sales:
| Marketing Date | Eligible under: | Head Marketed | Contribution to LGM actual marketings |
| September 5 | LRP-Fed Cattle SCE #1 | 1,200 | 1,000 |
| October 5 | LRP-Fed Cattle SCE #1 LRP-Fed Cattle SCE #2 | 1,400 | 1,000 |
| November 5 | LRP-Fed Cattle SCE #1 LRP-Fed Cattle SCE #2 LGM-Cattle SCE | 400 | 400 |
Cattle marketed on September 5 are only eligible under LRP-Fed Cattle SCE #1, and therefore can only contribute up to 1,000 head towards LGM Actual Marketings for November. Likewise, cattle marketed on October 5 are only eligible under LRP-Fed Cattle SCE #1 and #2, but fall outside the 15-day LGM buffer so cannot be reported on LGM marketing reports.
LGM Actual Marketings for November 2026 are therefore: 1,000 + 1,000 + 800 = 2,400. Market factor for November is (2,400 / 0.85) / 3,000 = 2,824 / 3,000 = 0.941. Any indemnities for which the producer would normally be eligible under LGM will be multiplied by 0.941.
All 508(h) livestock insurance programs are offered under the Federal Crop Insurance Act and administered and regulated by the Risk Management Agency. Only the Risk Management Agency has the authority to provide the official interpretation of policy and procedures. If you have questions or concerns regarding livestock programs, they should be directed at your agent or Authorized Insurance Provider, who will then inquire about the issue with the Risk Management Agency. The information provided on this website is for general informational purposes only and should not be construed as professional advice. While Bozic LLC strives to ensure that all information presented on this site is accurate, up-to-date, and complete, there may be instances of errors, omissions, or inaccuracies. The content is provided ‘as is,’ without any guarantees of accuracy or completeness. Bozic LLC will not be liable for any errors or omissions in this information or any losses, injuries, or damages arising from this blog’s use. Any reliance you place on such information is strictly at your own risk.