Dairy Revenue Protection Insurance
Insurance provided by SP Risk Services LLC
Professional guidance for your DRP decisions and actions.
Timing
When to place endorsements: How far out should I go?
Knowledge
Details of the endorsements: Protection factor, coverage level, component or class pricing?
Trust
Who to trust: Am I listening to someone who knows my operation and watches the milk markets?
Let the professionals advise you.
Many insurance agents don’t have experience in dairy and are happy to write an endorsement whenever they can, with no consideration of what is best for your operation. We utilize our decades of experience in dairy price management to help our customers determine the optimal time, quantity, and coverage to best protect milk prices.
Curious how well you are utilizing Dairy Revenue Protection insurance? See where you stack up with our DRP Scorecard!
Still need more? Read our FAQs:
What is Dairy Revenue Protection?
Dairy Revenue Protection (Dairy-RP) provides protection against an unexpected decline in revenue (yield and/or price) on the milk produced from dairy cows. In sum, the policy covers the difference between your final revenue guarantee and actual milk revenue during each quarter of the year.
How do I buy Dairy-RP?
You must buy Dairy-RP insurance through an authorized crop insurance agency like SP Risk Services LLC. You can fill out an application at any time to open a policy. However, insurance does not attach until you buy a quarterly coverage endorsement. You may buy multiple quarterly coverage endorsements under one policy. Your insurance coverage takes effect the first day of the quarter for which you purchased it.
When can I purchase Dairy-RP?
The Dairy-RP is available for purchase every business day when the coverage prices and rates are validated and published on the USDA Risk Management Agency website.
When is the premium due on Dairy-RP?
The premium is payable after the end of the Quarterly Insurance Period.
What pricing options are available?
There are two: the Class Pricing Option and the Component Pricing Option.
As a beginning or veteran farmer/rancher, am I eligible for an additional subsidy under Dairy-RP?
Yes. The subsidy for qualifying beginning farmers or ranchers provides an additional 10 percent of premium subsidy. For more information talk with a SP Risk Services Agent.
When is the cancellation date for the policy?
The cancellation date is June 30. Crop year is 12 month period starting July 1 and ending the following June 30; designated by the calendar year in which it ends.
When is the contract change date for the policy?
The contract change date is April 30. Contact SP Risk Services for any policy changes and dates on the upcoming crop year.
Is only Grade A milk insurable?
Yes, the policy will only insure Grade A milk. The prices used for Dairy Revenue Protection are Grade A prices. Acceptable milk marketing records shall include the Grade A identifier by a duly constituted regulatory agency.
How is actual milk revenue calculated for component pricing option?
The actual value is determined by multiplying the actual butterfat, protein, and other solids prices x the final component tests x covered milk production x yield adjustment factor ÷ 100.
Does this policy cover any other types of loss such as death of the dairy cattle?
No, this policy does not insure against the death or other loss or destruction of your dairy cattle, or against any other loss or damage of any kind.
What are the premium subsidy and coverage levels available to me?
Dairy-RP premium subsidy is as follows:
- Coverage Level
- 80% 85% 90% 95%
- Premium Subsidy
- 55% 49% 44% 44%
I have two dairies in two separate states – can I complete just one application?
One application per state is required, so two states requires two separate applications.
How do I complete a Dairy-RP application?
Contact TFM SP Risk Services today at 855.334.0200 or contact us to request an application
Contact us to get started with Dairy Revenue Protection Insurance
