U.S. to introduce dairy revenue protectionStaff Writer | August 21, 2018
A collaboration of U.S. organisations lead by the American Farm Bureau Insurance Services are introducing a new insurance product for American dairy farmers, called Dairy Revenue Protection (DRP), on 9 October 2018.
America U.S. dairy farmers currently have access to a Margin Protection Programme
The product is an area-based scheme allowing farmers to take quarterly coverage between 70 and 95% of revenue, which is sold daily. Farmers can take protection in one of two ways. Either by an average of USDA’s prices for Class 3 and 4 milk or based on constituents.
U.S. dairy farmers currently have access to a Margin Protection Programme (MPP) and can use the new revenue protection alongside this, giving them more options around risk management. The MPP protects against declines in a national average income over feed cost margin. ■