The U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA) has announced a new insurance plan for dairy producers that insure against unexpected declines in quarterly milk sales.
Farmers can start signing up for the new product beginning in October with the first available coverage starting in the first quarter of 2019.
“Expanding the Federal crop insurance program to markets that need it is key to an effective farm safety net,” said Bill Northey, Under Secretary of Farm Production and Conservation. “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.”
The plan is called Dairy Revenue Protection and will provide 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 and the insurance is available in all 50 states.
