Do Low Milk Prices Have You in the Dumps?
We may have a solution to help ease the problem!
Dairy Revenue Protection (DRP) is an area-based revenue product that is designed to ensure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level. The quarterly insurance periods cover a three-month period and can be sold up to five quarters, with the exception of the last sales period.
What does this mean? If milk prices drop below your guaranteed coverage level, the insurance will cover the difference and limit your risk.
There are two pricing options available for each endorsement. The expected revenue is based on futures prices for milk and dairy commodities and the amount of covered milk production elected by the dairy producer. The covered milk production is indexed to the state or region where the dairy producer is located. DRP is approved for sale in all 50 states.