Sign-up begins today for the Dairy Revenue Protection Program. Over the last two years, the American Farm Bureau Federation developed the insurance product with the Risk Management Agency. Farm Bureau Chief Economist John Newton says it provides protection against an unexpected decline in milk production revenue during each quarter of the year.
He says the Dairy-RP offers a better option for dairy producers than the Margin Protection Program.
Newton says they took some of the strengths of the crop insurance program to build a product that was responsive for the dairy industry.
There are two pricing options available. 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.
