Dairy Insurance

Dairy Revenue Protection Insurance is a USDA subsidized insurance product that protects against unexpected declines milk revenue. DRP Insurance provides coverage against milk market price declines for Class III, Class IV and Components on a quarterly basis, making it an important tool for hedging volatile dairy markets.

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Dairy Revenue Protection (DRP)

Price Protection

  • Insure against declining milk futures prices

  • Offered daily to producers who can purchase coverage for up to 5 nearby quarters

  • Maintain flexibility to higher prices

Subsidized Premiums

  • 44-55% subsidy based on coverage level

  • Premium costs are due at the end of the quarter insured

Customizable Coverage

  • Producers may cover 80 – 95% of their expected quarterly revenue

  • Options to use Class or Component pricing as basis for revenue

  • Ability to elect the quarterly insurance period, quantity of milk and protection factor each for coverage endorsement

Settles to announced Class or Component prices

  • Settles to quarterly average of announced Class III, Class IV, or component prices, dependent on election

CIH Tools

  • DRP daily pricing calculator for Class and Component pricing

  • Weekly Newsletter

  • Endorsement Tracker and Indemnity Projections

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