The USDA's Risk Management Agency announced a new insurance plan for dairy
producers that insures against unexpected declines in quarterly milk sales.
Sign-up for the new product begins October 9, with the first available coverage
starting the first quarter of 2019.
"Expanding the Federal crop insurance program to markets that need it is
key to an effective farm safety net. Because of cooperation with partners like
the American Farm Bureau Federation, we are able to offer this new product in a
way that it can be flexible based on the needs of dairy producers," said
Bill Northey, Under Secretary, Farm Production and Conservation.
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.
Those interested in purchasing Dairy Revenue Protection must do so through an
agent selling on behalf of an approved insurance provider. A list of crop
insurance agents is available at all USDA Service Centers and online at the RMA
Agent Locator, located at www.rma.usda.gov/tools/agent.html.
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/.