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AgriSured 
& Partners
  • Home
  • Dairy
    • Dairy Revenue (DRP)
    • Dairy Margin Coverage
  • Livestock
    • Cattle
    • Equine
    • Swine
    • Bees / Colonies
  • Crops
    • Adverse Weather
    • Lack of Rainfall
    • Haystack / Grain Fire
  • Aquatic Life
  • Farm & Ranch
    • Agribusiness
    • Commercial
    • Individuals & Families
  • About Us
    • Our Team
    • Mission Statement
    • Organizations We Support
  • Contact Us

Dairy Revenue Protection (DRP)

What is DRP?

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.

USDA - RMA Fact Sheet

Steps to Buying an Endorsement

1. Fill Out an Application

3. Choose Class or Component Pricing Option

2. Elect a Quarterly Insurance Period

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 scobb@agrisured.com.  

2. Elect a Quarterly Insurance Period

3. Choose Class or Component Pricing Option

2. Elect a Quarterly Insurance Period

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. 

3. Choose Class or Component Pricing Option

3. Choose Class or Component Pricing Option

3. Choose Class or Component Pricing Option

 DRP offers two Revenue pricing options:

  • The Class Pricing Option uses a combination of Class III and Class IV milk prices as a basis for determining coverage and indemnities.
  • The Component Pricing Option uses the component milk prices for butterfat, protein and other solids as a basis for determining coverage and indemnities. Under this option you may select the butterfat test percentage and protein test percentage to establish your insured milk price.

4. Decide How Much Milk to Insure

4. Decide How Much Milk to Insure

3. Choose Class or Component Pricing Option

 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:

  • Death of dairy cattle
  • Other loss or destruction of your dairy cattle
  • Any other loss or damage of any kind whatsoever

5. Choose a Level of Coverage

4. Decide How Much Milk to Insure

6. Decide on a Protection Factor

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.

6. Decide on a Protection Factor

4. Decide How Much Milk to Insure

6. Decide on a Protection Factor

  •  Increases the amount payable in the event of a loss.
  • Used to account for operations who might need additional value in the event of a drop in prices.
  • Range is 1.0 up to 1.5.
  • Increasing the Protection Factor has a direct and proportional increase in premium.
  • Does not increase the probability of a loss.

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  • Dairy Revenue (DRP)
  • Cattle
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