USA - New insurance plan available for dairy producers

10.08.2018 151 views
A new insurance plan for dairy producers is available that insures against unexpected declines in quarterly milk sales. “Expanding the federal crop insurance program to markets that need it is key to an effective farm safety net. Because of cooperation with partners like the American Farm Bureau Federation, we are able to offer this new product in a way that it can be flexible based on the needs of dairy producers,” said Bill Northey, Under Secretary, Farm Production and Conservation. The new plan, called Dairy Revenue Protection, provides insurance for the difference between the final revenue guarantee and actual milk revenue if prices fall. It also provides a greater choice of prices, from those that focus on cheese to fresh milk, protein or butterfat. Coverage levels are available from 70% to 95% of revenue. Dairy Revenue Protection is available in all counties in all 50 states. Participating producers are not precluded from participation in the USDA Farm Service Agency’s Margin Protection Plan. Those interested in purchasing Dairy Revenue Protection must do so through an agent selling on behalf of an approved insurance provider. A list of crop insurance agents is available at all USDA Service Centers. Dairy Revenue Protection was developed and approved through the Federal Crop Insurance Act’s 508(h) process, which allows private parties to develop insurance products that are in the best interests of producers, follow sound insurance principles and are actuarially appropriate. Dairy Revenue Protection is another risk management tool in the toolbox available to dairy producers. Additional information regarding Dairy Revenue Protection is available on the RMA website’s. Source - https://www.deltafarmpress.com
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