The program could be available this summer
By Diego Flammini
Staff Writer
Farms.com
Dairy producers could have access to a new dairy insurance program later this year.
The American Farm Bureau Federation (AFBF) is developing the Dairy Revenue Protection insurance program with American Farm Bureau Insurance Services.
The organizations are developing the program based on their understanding of producer frustration with current dairy protection programs. The product has also received approval from the USDA’s Federal Crop Insurance Corporation.
“Farmers were obviously not very pleased with the performance of the (Dairy) Margin Protection Program safety net, “John Newton, director of market intelligence with AFBF, told Farms.com today. “We thought working to build a different kind of product would benefit the industry.”
“This just gives farmers another risk management option in their toolbox.”
The Farm Bureau’s dairy insurance product works in a few different ways.
“We offer farmers the ability to protect either the component value of their milk or protect the standard class price of milk based on futures,” Newton said.
Aside from those coverage options, the program functions similar to other crop revenue protection insurance policies.
Enrollment costs are still being worked on, and dairy producers don’t have to be Farm Bureau members to use the program.
Farm Bureau expects the Dairy Revenue Protection insurance program to be available to dairy producers sometime this summer, Newton said.
In its May WASDE, the USDA forecasted the 2019 all milk price between $16.25 to $17.25 per cwt, which is slightly higher than 2018.