ProAg Protection for Your Dairy

ProAg Dairy Revenue Protection (DRP) is a great peace-of-mind policy for all dairy farmers. DRP is designed to insure against unexpected declines in the quarterly revenue from milk sales. Producers may cover up to 100% of their milk production by choosing coverage levels of 80-95% of the expected quarterly market revenue in 5% increments. The expected revenue is based on futures prices for milk and dairy commodities and the amount of covered milk production elected, and the covered milk production is indexed to a state or region based upon location.

Policy benefits to dairy producers include:

• Addresses basis risk through flexible pricing options and production factors
• Easy-to-use online quoting with the myProAg™ policyholder portal
• Revenue risk coverage (quantity and price)
• Timely and market-based risk management
• Addressing coverage gaps in existing products

Updates for 2023:

• Modified the termination date to January 31^st and the premium billing date to the first day of the third month after the end date.
• Added language that outlines what is considered subsidy capture and specifies subsidy capture is not allowable. The new Insured’s Certification Against Subsidy Capture statement that needs to be signed reads: “I certify that I will not offset any insurance provided under this quarterly coverage endorsement through dairy contracts traded on commodity exchanges or with other means for the purpose of subsidy capture, and I acknowledge that if I violate this certification, I may be subject to administrative, civil or criminal sanctions.”
• Modified the natural disaster language to include animal disease as an event that prevents you from marketing milk, provided you give us written notice within 72 hours of the disaster or reportable animal disease.
• Increased minimum declarable butterfat test to 4.00 pounds, increased maximum declarable butterfat test to 6.00 pounds and increased minimum declarable protein test to 3.20 pounds.

Contact a trusted ProAg agent for more information about Dairy Revenue Protection.