Dairy Revenue Protection Insurance

Dairy Revenue Protection (DRP) provides protection against an unexpected decline in revenue (yield and/or price) on the milk produced from dairy cows. This policy allows producers to choose how much and when to enroll their milk.
Inside view of dairy cow barn with cows eating

Dairy Revenue Protection Program Details

Dairy Revenue Protection is flexible and works for large and small farms. You can cover part or all of your quarterly milk production and don’t need to do it all at once. You can cover milk in multiple enrollments and choose to base coverage on either class pricing or component pricing.  

Pricing Options

Class Price

  • Blend of the Class III and Class IV milk prices
  • Insured declares their percentage desired for Class III and/or Class IV
  • Can be split or blended endorsements

Component Price

  • Uses a combination of butterfat, protein and other solid values
  • Other solids is a fixed value at 5.7 
  • Declared butterfat is no less than 3.5 and no more than 5.0 pounds
  • Declared protein is no less than 3.0 and no more than 4.0 pounds

Release of prices is determined by the Risk Management Agency.

 

Flexible options to meet your needs.

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Premium
Premium is determined by the Risk Management Agency based on the daily price and market volatility 
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Coverage Level
80%, 85%, 90%, 95% of the revenue guarantee
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Protection Factor
Between 1.00 and 1.50
Dairy Revenue Protection — in Action

"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."

Julie Patterson, Co-Owner and Chief Financial Officer of Patterson Farms, Inc., a sixth-generation dairy farm in Cayuga County, N.Y.

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.

 

What’s the difference between the products?

Compare all federally subsidized livestock insurance programs.

Livestock Insurance Analyzer

After contacting your Crop Growers agent to receive login information, you can gain exclusive access to this industry-leading risk management tool!

Next Step

Contact us today and see how a Crop Growers Dairy Revenue Protection plan can work for you.