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  • ZISK

Developing Your Dairy Revenue Protection Plan

Dairy Revenue Protection (DRP) has emerged as a valuable asset for dairy producers in their risk management toolkit since it was first introduced in 2018. In 2020, the program reached its zenith, covering 38% of U.S. milk production. Establishing an effective DRP plan involves considering various factors. Here are key aspects to ponder:

1. DRP Coverage Options

Assess your market exposure by engaging in discussion with your field representative or processor. This dialogue can help you better understand the compensation structure for your milk. DRP offers flexibility in selecting coverage from Class III, Class IV or Components, allowing you to leverage all three options. If opting for multiple coverages, I would encourage you to separate Class III and Class IV endorsements for independent settlements.

By Tanya Eadie

June 12, 2024



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