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Dairy Revenue Protection

Customizable Risk Management for Farms of all Sizes

The Dairy Revenue Protection insurance tool enables dairy farmers to protect revenue from adverse changes in milk prices, allowing them to lock in profits and perhaps even capture upside potential.  

Attend one of our live webinars to learn about DRP and how we can help you

What is Dairy Revenue Protection?

Run by the USDA’s Risk Management Agency (RMA) and approved by the Federal Crop Insurance Corporation, Dairy Revenue Protection is an insurance tool allowing dairy farmers to purchase risk management protection against declines in quarterly revenue from milk sales as a result of a decline in milk prices, a decline in milk production, or both.

How does Dairy Revenue Protection work?

Mechanics

Premium Subsidies

  • Available in all counties, in all 50 states
  • Can be purchased on a quarterly basis
  • Uses a combination of Class III and Class IV milk prices as a basis for determining coverage and indemnities
  • Available for five (5) quarters out
  • Premium is due after the quarter covered

90% and 95% Coverage = 44%

85% Coverage = 49%

80% Coverage = 55%

 Why purchase Dairy Revenue Protection now?

To take advantage of current market conditions and program subsidies, dairy farmers can purchase Dairy Revenue Protection from a USDA-approved crop insurance agent. By working with one of INTL FCStone's knowledgeable agents, farmers can create a risk management plan that fits any operation.

KEY: As long as these market dynamics persist, farmers will have a unique opportunity to purchase significantly subsidized dairy margin coverage at a premium that is lower than it would be under more volatile market conditions.

How can I find pricing information on Dairy Revenue Protection?

The FCM Division of INTL FCStone Financial Inc. has partnered with Ag Hedge Desk to create a Dairy Revenue Protection decision tool that enables producers to: 

  1. Find baseline coverage based on their exposure to Class III and Class IV CME milk futures prices, quarterly production, state, and other metrics
  2. Compare alternatives
  3. Optimize coverage

Simple and intuitive, this tool can deliver straight-forward views into what Dairy Revenue Protection might be right for you.

Try our pricing tool here

Why purchase Dairy Revenue Protection through INTL FCStone?

No matter where crop insurance is purchased, the rates and subsidy percent will always be the same. The only difference between agents is dairy knowledge and their ability to help producers optimize coverage. Producers must decide when to buy coverage, how many pounds, at what level and type, and what protection factor is best for their individual situation.

With decades of experience and access to deep liquidity, the professional advisors on our Dairy Team can help you devise and purchase a Dairy Revenue Protection policy uniquely suited to your needs. This includes not only the opportunity to protect revenue and lock in profits, but also the potential to capture some benefits if CME milk prices continue to rise.

If you are interested in taking advantage of this unique opportunity in this current marketplace, please contact us. 

Attend one of our live webinars to learn about DRP and how we can help you


Meet the Team

Chicago, IL
230 South LaSalle Street
Suite 10-500
Chicago, IL 60604
Tel: +1 (312) 456-3637

or

Dublin, Ireland
5th Floor
Portview House
Thorncastle Street
Dublin 4 Ireland
Tel: +35 31 634-9140

or

Singapore
One Raffles Place
#12-62 Tower 2
1 Raffles Place
Singapore 048616
Tel: +65 6309 1007

 

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