What is Dairy Revenue Protection?
Dairy Revenue Protection (Dairy RP) is an area-based revenue product designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level.
How Does Dairy Revenue Protection Work?
Select Component or Class Pricing Option
Component Pricing Options:
Butterfat, Protein, Other Solid (fixed at 5.7%)
Class Pricing Options:
Class III & Class IV milk prices
Select Quarterly Insurance Period
Declare Covered Milk Production
Select Coverage Level
70 - 95% in 5% increments
Declare Share Percentage
Select Protection Factor
1.00 - 1.50 in 0.05 increments
How Dairy Revenue Protection Began
AFBIS, Inc. + Dairy RP
After being elected President of the American Farm Bureau Federation (AFBF) in January of 2016, Zippy Duvall gathered representatives from several state Farm Bureau® organizations to research what the members would need in the next Farm Bill. It became clear additional risk management tools were needed in the dairy industry. Drawing on his years of experience with the Federal Milk Marketing Order System, Dr. John Newton brought to AFBIS the idea for a risk management tool to support dairy producers. AFBF and AFBIS spoke with many dairy groups across the nation, including a January 2017 survey collecting opinions and data from dairy producers nationwide.
By May 2017, a concept proposal for Dairy Revenue Protection was presented to the Federal Crop Insurance Corporation’s (FCIC) board of directors. Dairy Revenue Protection then went to external expert review. Reviewers deemed it attractive and recommended proceeding with development.
In February 2018 the FCIC Board approved the product to be implemented. Working closely with the Risk Management Agency, on Wednesday, August 8, 2018 the product was officially released to the public.