Dairy farmers and risk managers can now sign up for a free webinar explaining the new Dairy Revenue Protection (RP) insurance program. The webinar is scheduled for Friday, September 28, from 1 to 3:30 p.m. CDT.
RP insurance was approved by USDA’s Risk Management Agency this past summer, and the first policies will go on sale in October. They will be offered by Farm Bureau and other approved insurance providers.
The insurance allows dairy farmers protect their milk price on a quarterly basis, with an indemnity paid when the actual milk price falls below their insured milk revenue guarantee. Premiums will be “actuarily fair,” meaning they will be set on the day RP coverage is purchased based on expected prices and risk in the market.
The insurance will be federally subsidized. The amount of premium subsidy will vary, depending on the percentage of the level of coverage. Those coverage levels range from 70 to 95% in 5% increments. Subsidies decrease as coverage level increases.
Farmers will be able to select one of two pricing options. The first option is the “class” option which is a blend of Class III and IV prices. The second option is a “component” option, with prices milk based on butterfat, protein and other solids. Farmers then will select how much milk to cover, the coverage level (70 to 95%), the quarter(s) of year they want coverage up to 5 quarters out, and an optional protection factor.
The September 28th webinar will cover current dairy markets, how RP insurance was developed and how the program works. Dairy farmers, insurance agents, commodity group personnel and members of the general public are all invited to attend. The webinar will accommodate the first 1,000 who register.
To register, click here.