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

They 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 proprietary Optimum tool analyzes federal and private insurance policies to find the best choice whatever your risk management goal.

"I can't say enough about their crop insurance division. It's really made our business a lot easier."

Brad & Kay

Grain & Beef Producers, South Dakota

Brad & Kay

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.