New Risk Management Tool for Dairy Producers

January 21, 2020

CORTLAND, N.Y. — Crop Growers, LLP customers will now have exclusive access to a new DRP Analyzer to evaluate Dairy Revenue Protection (DRP) insurance coverage that helps producers guard against the ever-present threat of declining milk prices.

“We are very excited to introduce our new DRP Analyzer and proud to announce that it will be offered as a free resource to our Crop Growers customers,” said Crop Growers Senior Vice President, Jeremy Forrett. This new tool is uniquely designed to facilitate informed decision-making by offering producers access to both live and historical market data, what-if analysis, endorsement tracking, estimates for probability of indemnity and much more. According to Forrett, the DRP Analyzer “was built in collaboration with national dairy experts and several Farm Credit associations across the country to deliver what we believe is an industry leading risk management tool for our producers.”

The DRP Analyzer empowers producers to quickly evaluate the available DRP risk management options and make educated decisions when purchasing by giving them the ability to compare various scenarios relevant to their specific operation. “Our producers can also communicate desired coverage details directly to our agents through the DRP Analyzer with the simple click of a button, enabling us to expand the high service standards that have become synonymous with Crop Growers,” added Forrett. Customers will also be able to receive daily price reports with key information and set triggers to notify them when market conditions meet customized criteria set by the producer.

“Although the price of milk can be unpredictable, revenue doesn’t have to be with proper risk management,” concluded Forrett.

DRP insurance is a federally subsidized crop insurance product that became available for purchase nationwide in October 2018.  It is a risk management program that allows dairy farmers to purchase protection against decline in quarterly revenue from milk sales. This includes declines in milk prices and/or declines in milk production. To learn more about DRP, view the DRP fact sheet at CropGrowers.com.

To hear firsthand from New York Dairy producer Steve Durfee how crop insurance has added financial stability to his operation, click here.