A new era of dairy margin insurance is providing better risk management tools for dairy producers especially in the current market environment. Chip Whalen with CHS Hedging says the current milk prices are above break even for many producers, even with higher feed costs. He says that makes insurance a good investment.

While the Dairy Margin Coverage is a good tool, Whalen says they are recommending Dairy Revenue Protection to their clients because it fits more operations.

Whalen says both products not only help lock in a profit for producers but they can also help minimize the volatility that was so evident in the milk market over the last year.

DMC and DRP replaced the Margin Protection Program and are showing much higher adoption rates because of the improvements made in these tools.