DRP is a risk management tool that insures against unexpected declines in quarterly revenue from milk sales as a result of a decline in milk prices, milk production or combination of both. The expected revenue is based on futures prices for milk and dairy commodities and the amount of covered milk production elected.
You can fill out an application at any time. However, insurance does not attach until you buy a quarterly coverage endorsement.
Call Stacey at (509) 760-5993 or email her at email@example.com.
The quarterly insurance period contains the three-month periods corresponding to one of eight quarters for which coverage is available under the quarterly coverage endorsement.
For example, the insurance period for the January 10 sales closing date contains the quarters of April through June, July through September, October through December, January through March, and April through June.
DRP offers two Revenue pricing options:
You are not required to purchase an endorsement on all the milk you produce.
DRP provides insurance only for the difference between the final revenue guarantee and actual milk revenue, times actual share and protection factor, caused by natural occurrences in market prices and yields in the pooled production region.
DRP does NOT insure against:
You may cover 80 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 you select.