The U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA) has announced a new insurance plan for dairy producers that insures against unexpected declines in quarterly milk sales. Sign-up for the new product begins Tuesday, October 9, 2018, with the first available coverage starting the first quarter of 2019.

 

The new plan, called Dairy Revenue Protection, provides insurance for the difference between the final revenue guarantee and actual milk revenue if prices fall. It also provides a greater choice of prices, from those that focus on cheese to fresh milk, protein or butterfat. Coverage levels are available from 70 to 95 percent of revenue. Dairy Revenue Protection is available in all counties in all 50 states.

 

Participating producers are not precluded from participation in the USDA Farm Service Agency’s Margin Protection Plan.

 

Dairy Revenue Protection was developed and approved through the Federal Crop Insurance Act’s 508(h) process, which allows private parties to develop insurance products that are in the best interests of producers, follow sound insurance principles and are actuarially appropriate.

 

Dairy Revenue Protection is another risk management tool in the toolbox available to dairy producers. Federal crop insurance helps producers and owners manage risks and strengthens the rural economy. Additional information regarding Dairy Revenue Protection is available on the RMA website’s Livestock page, located at www.rma.usda.gov/livestock/.

 

For more information about crop insurance and the modern farm safety net, visit www.rma.usda.gov.