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Dairy Revenue Protection (DRP)
Protect yourself from fluctuating milk prices
What is DRP?
Dairy Revenue Protection (DRP) is an insurance program that protects dairy producers from revenue losses due to falling milk prices or reduced production. It covers up to 95% of expected revenue, with flexible coverage options and a federally subsidized premium. Claims are triggered when actual revenue falls below the insured amount, providing financial stability and risk management against market volatility.
All you need to know about Dairy Revenue Protection
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Purpose: Offers financial protection against revenue declines due to falling milk prices or reduced production.
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Coverage: Insures up to 95% of expected revenue based on milk production and prices.
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Trigger: Activated when actual revenue falls below the insured level, calculated from expected versus actual prices and production.
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Policy Customization: Allows selection of coverage levels, protection amounts, and flexible terms.
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Premium Calculation: Based on coverage level, expected revenue, and market conditions, with federal subsidies.
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Claim Process: Claims are made when revenue falls short, with payments covering the difference between insured and actual revenue.
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Benefits: Stabilizes income, manages price volatility, and provides a financial safety net.
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