The American Farm Bureau Federation has developed a new risk management product focused on milk revenue prices. The current landscape of insurance products available to dairy farmers involve margin-based tools. Director of Market Intelligence John Newton says Dairy Revenue Protection Insurance brings something different to the table. “We know that revenue-based policies have been the most successful and widely utilized in the crop insurance sector,” says Newton. “A key feature allows farmers to use futures prices develop a price for butterfat, protein and other milk solids.” There are other tools, such as the Margin Protection Program, that help during a prolonged decline in milk prices. However, Newton says Dairy Revenue Protection moves with the market. The policy is expected to be available in late summer of 2018.
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