Dairy Revenue Protection (DRP)

Dairy Revenue Protection (DRP) is an insurance program that protects dairy producers against unexpected declines in milk revenue. It allows you to choose the amount of milk to insure, a coverage level (80%–95%), the pricing option (Class III, Class IV, or a blend), and the quarterly coverage period. If actual milk revenue falls below your coverage guarantee, you receive an indemnity payment.

Example:
You insure 1 million pounds of milk for Q3 at a coverage price of $20/cwt and 95% coverage. Your revenue guarantee is $19/cwt. If the actual revenue drops to $17.50/cwt, you’d receive a payment of $1.50/cwt, or $15,000 total, to help offset the drop in milk prices.

DRP offers flexible, market-based protection to help stabilize your dairy income.