COMMON GROUND BLOG

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Better Safety Net

The new Dairy Revenue Protection insurance program, in essence, lets dairy producers buy put options with a 44 percent to 59 percent subsidy, offers better access to deferred and Class IV coverage than futures, and provides the flexibility to match coverage to Jersey components, according to Sarina Sharp, dairy risk manager and author of the Daily Dairy Report. better safety net includes income over feed costsYou can also have other livestock insurance policies such as Livestock Gross Margin for Dairy as long as they don’t cover the same milk.

In addition, USDA replaced the Margin Protection Program with Dairy Margin Coverage. The subsidies are more generous and allow you to insure an income-over-feed margin as high as $9.50/cwt., up from the prior $8 cap.

“So those seeking risk management have better choices this year than in the past,” Sharp summed up.

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