Livestock Insurance Products
Dairy Revenue Protection (DRP): The DRP policy provides protection against declines in quarterly revenue from milk sales. This product is indexed using state-level milk production and there are two pricing options available to choose from Class Price (class III and IV milk prices) and Component Pricing (butterfat, protein, milk solids). Not all milk production is required to be covered during the quarters chosen to insure and the insured can choose either or both of the pricing options. Up to five quarters can be insured at a time. Click here to learn more.
Livestock Gross Margin (LGM): Livestock Gross Margin-Dairy (LGM-Dairy) offers protection to the margin between Class III milk price (CME) and the feed cost (Corn & Soybeans – CBOT). This product establishes protection for when producers see a risk of change to Class III milk price and/or the cost of feed. LGM-Dairy allows producers to choose deductible levels, the time frame that they want to protect, and the amount of production they want to cover. Producers can choose different deductible levels ranging from $0 to $2.00 per cwt. Producers choose over a 10-month timeframe which months to enroll milk. Click here to learn more.
Livestock Risk Protection (LRP): Livestock Risk Protection (LRP) is a revenue based policy offered through the Risk Management Agency under most recent Farm Bill. Beef and Pork producers across the nation now have the opportunity to insure sudden declines in the market price they receive for their animals upon the sale of those livestock. Producers utilizing LRP have the option to purchase insurance on livestock to be marketed up to 52 weeks from the date they originally purchase coverage. Livestock revenue based programs now give producers the opportunity to minimize market volatility that is currently impacting their businesses. Click here to learn more.