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.

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.

You can participate in both the FSA’s Margin Protection Program and Dairy Revenue Protection at the same time. 

Yes. The subsidy for qualifying beginning or veteran farmers/ranchers provides an additional 10 percent of premium subsidy.

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.

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.

More Frequently Asked Questions on USDA Here

 

These insurance products are offered through the parent company Graybeal Group Inc.