Dairy Revenue Protection Program Announced

Dairy Revenue Protection (DRP) is a new federally subsidized insurance plan specifically for dairy producers. DRP protects revenue based on price and production.


Coverage is provided on declines in quarterly revenue from milk sales relative to the guaranteed coverage level.


DRP is an area-based plan of coverage and does not insure a dairy’s individual milk production. Production for the insurance period will be determined on the state-level with milk production reports from the National Agricultural Statistics Survey.


Coverage is available quarterly and can be purchased into the next year. Daily quotes are available for up to five quarters and endorsements may be purchased daily. The chart below details the purchasing windows.



To determine the level of coverage, dairy producers must decide on the following:


The value of the milk protected – class or component pricing

     Class Pricing – uses Class III or Class IV futures prices
     Component Pricing – uses component milk prices for butterfat protein


The amount of milk production to cover
     Determined by the producer and can be less than the actual quarterly estimated production.


Coverage level from 70-95% with a protection factor up to 150%


Quarterly endorsement based on the current sales period


Contact your local crop insurance agent to learn more about how Dairy Revenue Protection can work for your operation.