Dairy Revenue Protection
Dairy Revenue Protection (DRP) provides protection against an unexpected decline in revenue (yield and/or price) on the milk produced from dairy cows. The policy covers the difference between your final revenue guarantee and actual milk revenue during each quarter of the year.
Quarterly Coverage Endorsements
Quarterly coverage endorsements correspond to the eight quarterly insurance periods available for purchase during the crop year. Producers may purchase coverage for up to five quarters and have multiple endorsements for the same quarterly insurance period.
Producers have two pricing options:
The Class Pricing Option uses a combination of Class III and Class IV milk prices as a basis for determining coverage and indemnities.
The Component Pricing Option uses the component milk prices for butterfat, protein and other solids as a basis for determining coverage and indemnities. Under this option you may select the butterfat test percentage and protein test percentage to establish your insured milk price.
DRP provides insurance only for the difference between the final revenue guarantee and actual milk revenue multiplied by actual share and protection factor, caused by natural occurrences in market prices and yields in the pooled production region.
Applying for DRP
DRP is available in all counties within all 50 states and applications may be submitted at any time during the year. However, insurance does not attach until you buy a quarterly coverage endorsement. You may buy multiple quarterly coverage endorsements with one application. Your insurance coverage starts the day you buy a quarterly coverage endorsement.