Dairy Revenue Protection (Dairy RP) is an area-based revenue product designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level.

  • Milk and farm profitability has dropped over most recent years  increasing concerns for what the future holds for dairy operations across the US. 
  • DRP is an area based  federal crop insurance product  that provides revenue coverage for dairy farmers.   
  • DRP is sold daily and offers flexibility to protect revenue at varying times by offering 5 different quarterly insurance periods. 
  • Two different pricing options similar to how milk is priced in federal marketing orders.  These are price and component pricing.  DRP policy developers saw a need for milk production protection and using what milk prices are based on (classes or components) rather than feed costs.
    • Option 1-  Class pricing is average of class 3 and class 4 milk prices based on producers declared class price weighting factors.
    • Option 2- Butterfat, protein and other solids prices based on insured ‘s declared butterfat and protein tests to ensure a component value of milk.
  • This allows producers customize coverage to accurately reflect the dairy farms price risk.    DRP offers  from 70-95% coverage level and producers can elect an additional  protection factors to increases indemnity in event of decline in milk revenue from 1-1.5.
  • DRP offers peace of mind when we have decline in milk prices and state level yield losses.

DAIRY PRICES / MILK PRODUCTION VALUES

Dairy Prices and Expected Milk Production  are available via the RMA actuarial’s.  It allows you to view the current dairy values for your region.

Fill in the following Fields

  • Insurance Plan: Dairy Revenue Protection
  • Commodity: Milk
  • Commodity Year: For the DRP program July 1st is the beginning of a new year
  • State
  • County
  • Effective Date

Prices Tab will show you the prices for each available period for both the Class and Component price options

Milk Production tab will show you the expected and actual (when available) milk production for a selected period.

Dairy Revenue Protection (DRP) ESTIMATE

A Quick Estimate for the Dairy Revenue Protection (DRP) is available through the RMA website.  As prices change almost daily this allows you to access to the current price estimates.

QUICK CRITERIA

  • Commodity: Milk
  • Commodity Type:  Select if you would like to use Class or Component Price Options
  • Interval: Select which interval you would like prices for.  (If you would like to do multiple intervals use the Detailed Estimator on the RMA site and Select Dairy Revenue Protection for the Insurance Plan.

INDIVIDUAL COVERAGE

  • Sales Effective Date
  • Insured Share Percent
  • Covered Milk Production:  How many pounds of milk
  • Protection Factor: Available values can be between 100% and 150%

CLASS PRICE OPTION

  • Class Price Weighting Factor: What percentage of Class III Milk – remaining amount would be Class IV

COMPONENT PRICE OPTION

  • Butterfat Test
  • Protein Test

Additional DRP Information – clicking on any of the links below may ask you to download a PDF file while others will take you to the specified location in the RMA website.