Dairy Risk Management

Backed by our industry leading technology, our experienced Dairy Team specializes in working with clients to customize a risk management plan specific to their unique operation. CIH offers producers a holistic approach that includes dairy margin coverage, feed input protection, margin management, and data-driven strategy.

  • Identify your risk exposure across milk and feed including corn, soybean meal, and other price correlated feeds

  • Establish protection that aligns with your profitability targets, risk tolerance, and market bias

  • Ability to adjust positions to modify protection or capture gains as prices change over time

CONTACT DAIRY TEAM SEE SEMINARS

Dairy Revenue Protection

Dairy Revenue Protection (DRP) is a USDA-subsidized insurance program that protects dairy producers against unexpected declines in quarterly revenue, factoring in milk yield and milk price volatility.

  • Designed to insure against unexpected declines in quarterly revenue from milk sales relative to a guaranteed coverage level

  • CIH can combine DRP with futures/options strategies for complete milk hedging

  • Expert advice on how to best utilize the program to fit with your needs, goals, and risk tolerance

  • Easy, efficient, and timely execution with powerful software tools for analysis that offer a friction-free enrollment process

EXPLORE DRP

Software

  • A customized risk management website for your operation hosting robust tools, information, and statistical data, including easy to understand milk and feed market fundamental analysis with clear data visualization as well as customized margin calculators and feed procurement modeling

  • Seamless tracking of hedge positions, profitability, and a variety of metrics for improved decision-making

  • Software that allows transparency for partners, family members, bankers, and accountants to assist with profit/ loss forecasts and all milk and feed coverage

CONTACT DAIRY TEAM

Commercial Dairy

Processors, co-ops, and commercial dairy buyers can take advantage of CIH’s services for help with managing their inventory, fixed pricing, and procurement contracts through:

  • Price risk management programs that consider your overall market position on net cash, basis, futures, options, and swaps

  • Custom P&L, net delta, risk reporting, portfolio stress testing, and strategy generation tools along with a library of fundamental information

  • Ongoing support to help you manage your cumulative position as the market changes


Why Choose CIH for Dairy Risk Management

CIH combines deep dairy market experience with cutting-edge technology to offer an unmatched margin management solution. Whether you’re a family dairy farmer, large cooperative, or commercial processor, we can help you protect your profitability through:

  • Personalized one-on-one consulting

  • Seamless integration of DRP, futures, options, and feed protection

  • Easy-to-use margin and exposure tracking software

  • Data-driven strategy refinement as the markets evolve

CONTACT DAIRY TEAM

What Our Clients Say About Us

In the videos below, you can hear directly from our clients about how CIH helps agriculture producers gain control over their commodity price risk.

Testimonials are not indicative of future success. Individuals providing testimonials were not compensated.

It shouldn't matter if markets go up or down the next day.

Mike Paustian, Part 1

Paustian Enterprises

February 20, 2020

It's just a really streamlined experience for me.

Mike Paustian, Part 2

Paustian Enterprises

February 20, 2020

That’s one of the things I really appreciate about CIH, they’re not ...

Mike Paustian, Part 3

Paustian Enterprises

February 20, 2020

Having CIH gives me more confidence in executing.

Joe Dykhuis, President

Dykhuis Farms

April 11, 2023

The strategy helps me sleep better.

Ken Qualls, CFO

House of Raeford Farms

February 06, 2018

It’s made my risk management more efficient.

Greg Bell, President

Feedport USA

February 06, 2018
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    Market information offered by Commodity & Ingredient Hedging, LLC, a commodity trading advisor registered with the CFTC and a Member of NFA. Insurance services provided by CIH Insurance Services, LLC. The information contained in this publication is taken from sources believed to be reliable, but is not guaranteed by Commodity & Ingredient Hedging, LLC, nor any affiliates, as to accuracy or completeness, and is intended for purposes of information and education only. Nothing therein should be considered as a trading recommendation by Commodity & Ingredient Hedging, LLC. There is a risk of loss in futures and option trading. Past performance is not indicative of future results.

    Issuance of insurance coverage is subject to underwriting review and approval. Coverage not available in all states. Please see the policy for the full terms, conditions and exclusions. CIH Insurance Services, LLC is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Coverage scenarios are hypothetical and shown for illustrative purposes only. Coverage is dependent on the actual facts and circumstances giving rise to a claim. CIH is an equal opportunity employer and provider.© CIH. All rights reserved.

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