Effective October 9, Dairy Revenue Protection insurance is available. This insurance product was developed by the American Farm Bureau Federation and is backed by the Federal Crop Insurance program. This policy provides risk management protection, picking up the difference between the revenue guarantee and the actual milk price.”Essentially, it allows farmers to value the milk in the policy more closely with what they’re doing on the farm,” says AFBF Chief Economist John Newton. “One key feature is that farmers can use futures prices to develop a price for butter fat, protein and other milk solids.” Newton goes on to say the cost of Dairy-RP will vary, depending on market prices and premiums. “Early indications are that higher levels of coverage could range from 10 to 30 cents per hundredweight. Nearby quarters will be more affordable than distant quarters, and policies with higher deductibles or lower values of milk insured will be more affordable.”
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