Dairy Revenue Protection
Dairy Revenue Protection
- Designed to protect against unexpected declines in milk prices
- Expected revenue is based on futures prices for milk and dairy commodities
- The covered milk production is indexed to the state or region where the dairy producer is located.
Pricing Options
The Class Pricing Option uses a combination of Class III and Class IV milk prices.
The Component Pricing Option uses the component milk prices for butterfat, protein and other solids as a basis for determining coverage and indemnities.
Coverage
You may cover 80 percent to 95 percent of your expected quarterly revenue
You can choose a protection factor between 1.00 and 1.5 in 0.05 increments.
Ending Values
The actual ending milk or component values are based upon the monthly average prices announced by USDA’s Agricultural Marketing Service
The milk yields are based upon USDA’s National Agricultural Statistics Service Milk Production report
Availability
DRP is available in all counties in all 50 states.
Does this policy cover any other types of loss, such as death of the dairy cattle?
No, this policy does not insure against the death or other loss or destruction of your dairy cattle, or against any other loss or damage of any kind.
Does this affect Farm Service Agency’s Margin Protection Program?
You can participate in both the FSA’s Margin Protection Program and Dairy Revenue Protection at the same time.
As a beginning or veteran farmer/rancher, am I eligible for an additional subsidy under Dairy-RP?
Yes. The subsidy for qualifying beginning or veteran farmers/ranchers provides an additional 10 percent of premium subsidy.
What is the Class Pricing Option?
The Class Pricing Option uses an insured’s election of a combination of Class III and Class IV milk prices as a basis for determining coverage and indemnities.
What is the Component Pricing Option?
The Component Pricing Option uses the component milk prices for butterfat, protein, and other solids as a basis for determining coverage and indemnities. The insured selects the declared butterfat test and declared protein test and the other solids test is fixed at 5.7 to establish the milk price.
These insurance products are offered through the parent company Graybeal Group Inc.