Dairy Revenue Protection

DFA Risk Management is here to help you understand the Dairy Revenue Protection (Dairy-RP) insurance program, which is a new risk management tool available to dairy farmers. Dairy-RP is a federal crop insurance program that allows dairy farmers to purchase insurance that puts a minimum price on Class III and/or Class IV milk prices. Because it is a crop insurance program, its costs are highly subsidized by the federal government. This makes Dairy-RP a less expensive choice to place a minimum price than any other opportunity. Members can buy a Dairy-RP policy through DFA. 

Since Dairy-RP provides a revenue guarantee for the Class III and/or Class IV milk you choose to cover, it is an effective tool to place a floor on your Class III and/or IV milk prices. DFA Risk Management is in a unique position to be able to help you understand how much of your milk check milk price is impacted by Class III and IV prices. As experts in milk pricing, dairy risk management, and the impact that volatile milk prices have on member milk checks, we can help you understand how Dairy-RP and our other programs may work together.

To help members utilize this program, DFA Risk Management sends a daily email with a snapshot of pricing estimates. Send us a request if you’d like to receive this email regularly. Please give us a call at 1-877-424-3343 if you’re interested in discussing how Dairy-RP would fit into your risk management strategy.