Dairy Revenue Protection (Dairy-RP) Program

By Kim Clark, Nebraska Dairy Extension Educator

 In August this year the USDA unveiled the Dairy Revenue Protection (Dairy-RP) program in conjunction with the Risk Management Agency.  This program is designed to insure against unexpected declines milk sales on a quarterly basis at a guaranteed coverage level.  The revenue will be based upon futures prices for milk and dairy commodities with the coverage level elected by the producer.

 There are two base pricing options of coverage available.

  • The Class Pricing Option which uses a combination of Class III and Class IV milk prices as a basis for determining coverage and indemnities.
  • The Component Pricing Option which uses the component milk price for butterfat, protein and other solids as the basis for determining coverage and indemnities.  Producers have the ability under this option to select the butterfat test percentage and protein test percentage to establish the insured milk price.

You may cover 70 percent to 95 percent of your expected quarterly revenue in five percent increments. A premium subsidy is available and is based on the coverage level selected.

It is important to note that the Dairy-RP insurance covers losses for the difference between the final revenue guarantee and actual milk revenue, times the actual share and protection factor established which are caused by natural occurrences in market prices and yields in the pooled production by region.  Please note it does not insure for losses against:

  • Death of dairy cattle;
  • Other loss or destruction of your dairy cattle; or
  • Any other loss or damage of any kind whatsoever.

 You must buy Dairy-RP insurance through an authorized crop insurance agent. You can fill out an application at any time. However, insurance does not attach until you buy a quarterly coverage endorsement. You may buy multiple quarterly coverage endorsements with one application. Your insurance coverage starts the day you buy a quarterly coverage endorsement.

 For More Information…

USDA has developed a web-based fact sheet to help understand the basic parameters of the program along with a link providing a list of crop/commodity insurance agents available under the Agent Locator Page.  To access this information go to:


 Webinar Offered…

The I-29 Moo University and Minnesota Milk along with the Nebraska State Dairy Association (NSDA) are co-hosting a webinar – Dairy Revenue Protection: How to Make 2019 an Upside-Only Year, to help explain the details of the program and how producers can participate to help influence the outcome of their individual bottom line break-evens.  Dr. Marin Bozic, Assistant Professor in Dairy Foods Marketing Economics in the Department of Applied Economics at the University of Minnesota will be presenting the information on Tuesday, October 23rd from 12:00 p.m. – 1:00 p.m. (CST) during a webinar.  To sign-up to participate in the webinar go to https://bit.ly/2NwW6eF to register and receive a direct link for the webinar.