Dairy Revenue Protection Insurance
Dairy Revenue Protection Program Details
Dairy Revenue Protection (DRP) is flexible and can be customized to any size operation. Producers can choose to cover all or part of their quarterly milk production, with the option to enroll in multiple coverages. DRP allows for pricing based on either class pricing or component pricing, providing tailored risk management solutions.
Pricing Options
Class Price
- Class III and Class IV pricing based on milk futures
- Producers decide the coverage percentage to protect
- Pricing can be blended or split endorsements
Component Price
- Protect pricing based on butterfat, protein and other solid values
- Other solids is a fixed value at 5.7
- Declared butterfat is no less than 4.0 and no more than 6.0 pounds
- Declared protein is no less than 3.20 and no more than 4.5 pounds
Release of prices is determined by the Risk Management Agency.
Flexible options to meet your needs.
"The indemnities we've received, along with other risk management strategies we have in place, have helped us weather the lower milk prices this year. And the dairy and livestock insurance specialists have been fantastic. They are always very responsive to our needs and our monthly meetings have been very informative."
Additional Information
Other Coverage Details
- DRP can be used with FSA’s Dairy Margin Coverage Program.
- DRP, LGM and LRP cannot be used at the same time, on the same milk.
Requirements
- Insureds must be able to prove that 85% of the milk elected was produced in the elected quarter when insuring under Class Pricing.
- Insureds must be able to prove that they produced 90% of the given tests that they elected when insuring under Component Pricing.
Price Guarantees
Dairy Revenue Protection price guarantees change daily — based on CME futures prices. You can cover market production daily, when CME market pricing is available.