Availability of a new insurance plan for dairy producers developed by American Farm Bureau Insurance Services (AFBIS) that insures against unexpected declines in quarterly milk sales – called Dairy Revenue Protection (DRP) – was announced by USDA’s Risk Management Agency.
DRP “provides insurance for the difference between the final revenue guarantee and actual milk revenue if prices fall,” USDA said in a release. It increases flexibility for producers seeking coverage by providing “a greater choice of prices, from those that focus on cheese to fresh milk, protein or butterfat.”
Coverage levels available under the program range from 70% to 95% of revenue (in 5% increments), and coverage is available in all counties in all 50 states.
Further, producers who elect for coverage under the new program are not precluded from participation in the existing Margin Protection Plan – Dairy (MPP-Dairy) from USDA’s Farm Service Agency (FSA).
Sign-up for DRP opens October 9, 2018, with the first available coverage taking effect for the first quarter of 2019.