WASHINGTON AG NETWORK – GLENN VAAGEN – Sales are once again underway for the Dairy Revenue Protection policy, offered through the federal crop insurance program. The policy, which is managed by the U.S. Department of Agriculture’s Risk Management Agency, had been put on hold during the partial government shutdown. Dairy Revenue Protection is designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level.
The potential revenue is based on the futures prices for milk and dairy commodities and the amount of covered milk production that’s chosen by the producer. The covered milk production is then indexed to the state or region where the dairy producer is located. Producers can find more information on the Risk Management Agency’s website. Sales of the Livestock Risk Protection Policy has also resumed. It’s designed to insure against declining market prices. Producers have a variety of coverage options and insurance time periods to choose from.
Picture: Washington Ag Network, file photo, Dairy-Cow-8