Dairy Revenue Protection

Insure against unexpected declines in the quarterly revenue from milk sales.

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PRODUCT OVERVIEW

Benefits

  • Dairy Revenue Protection (DRP) is an area-based product that pays when revenue drops because of lower prices, reduced production or both.
  • DRP fills a gap in existing risk coverage for dairy producers by addressing milk basis and variability in milk production by region.

Endorsement

  • A quarterly coverage endorsement gives you flexibility in your guarantees without having to change the underlying policy. You can purchase up to five quarters into the future on any sales closing date.
  • Premium is not attached to the policy until you fill out a quarterly coverage endorsement.

Pricing Options

  • The class pricing option uses your specified percentage of futures market Class III and Class IV milk prices (equal to 100).
  • The component pricing option uses a combination of butterfat, protein and other solids values based on your declared butterfat and protein tests.

Availability

  • DRP is available in all states.

Coverage Level

  • 80%, 85%, 90%, 95% of revenue guarantee.

Protection Factor

  • Between 1.00 and 1.50, in .05 increments
  • It is used to calculate the policy protection and impacts both premium and indemnity.

Other Coverages

  • You can have other livestock insurance policies, such as Livestock Gross Margin for Dairy, for all or part of the same period, as long as they do not cover the same milk.
  • USDA premium subsidies apply, as in crop insurance, ranging from 55% on 80% coverage, to 44% on 95% coverage.
  • Qualified Beginning Farmers and Ranchers and Veteran Farmers and Ranchers receive an additional 10% premium subsidy.

Available to all qualifying producers regardless of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status.

Why Work With Us For Dairy Revenue Protection Insurance?

Dedicated Specialists

Our agents are non-commissioned and focus 100% of their time on crop insurance and livestock insurance — every working day of every week in the year. They don’t sell property, casualty or life insurance.

Highly Trained

Our insurance officers receive annual training on RMA changes to crop insurance and livestock insurance plans and stay informed throughout the year.

Financial Expertise

As a lender, we understand financial risk and work to protect your working capital, not just your crop or livestock.

Decision-Making Tools

Our DRP Analyzer provides market statistics, what-if scenarios and revenue projections to help dairy producers identify advantageous times to lock in DRP and track their DRP risk management plan.

DRP Analyzer

The Dairy Revenue Protection Analyzer (DRP Analyzer) is an exclusive tool to help our customers make informed purchase decisions for DRP. The tool leverages real quarterly statistics to plan risk management, track and forecast expected income, and calculate potential losses and indemnities.

In addition to live endorsement tracking, the DRP analyzer gives producers the ability to view their revenue projections against their cost of production and where DRP has supplemented their operation’s revenue needs. (As shown in example chart.)

Take the emotion out of your risk management decision by utilizing the DRP analyzer.

DRP analyzer tool chart
DRP analyzer tool

This What-If Analysis provides a real-world example of how the DRP Analyzer can provide indemnity estimates. It compares component and class price scenarios against current DRP cover levels.

"Crop revenue coverage through Farm Credit has brought us peace of mind."

Ron and Julie

Specialty Crop and Beef Producers, Wyoming

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Ron and Julie

Ready to Talk?

Contact us if you have questions or need more information. Fill out the form, or connect with your local office using the Office Locator.

FCSAmerica serves farmers, ranchers, agribusinesses and rural residents in Iowa, Nebraska, South Dakota and Wyoming. For inquiries outside this geography, use the Farm Credit Association Locator  to contact your local office.