In October, the American Farm Bureau Federation (AFBF) and American Farm Bureau Insurance Services (AFBIS) will submit their final proposal to the Federal Crop Insurance Corporation (FCIC) for a new dairy insurance policy (Dairy - Revenue Protection).
Under the Class Price Option, dairy farmers can select a combination of Class III and IV prices that best match their product utilization to optimize risk management. Under this option, they will also be able to specify the number of pounds of milk covered, and what percent of that milk they wish to cover. More details on the Class Price Option can be found here.
Under the Component Option, farmers will be able to select revenue protection based on milk component production, including butterfat, protein, and other milk solids. The producer can select the desired butterfat percentage and protein percentage. The milk solids percentage is fixed at 5.7%. More details on the Component Option can be found here.
To get producer input, AFBF and AFBSIS is conducting an on-line survey, and is encouraging dairy farmers to voice their opinions about the proposed revenue protection insurance products. The survey can be found online at: https://www.farmbureausellscropinsurance.com/dairy-risk-survey/