News

Farm Bureau considering milk revenue insurance

 

American Farm Bureau Federation

A major farm group’s insurance company is prepared to offer dairy farmers a new risk management tool.  “The product is called Dairy Revenue Protection and essentially offers farmers protection on their revenue from milk sales.”  American Farm Bureau Federation’s John Newton tells Brownfield the program is similar to how its company insures crops.  “For around 10 cents a hundredweight, a farmer could insure the revenue for the next quarter at a particular price.  For 20 cents a hundredweight, you could insure up to two quarters out.  It’s very competitive with the rates in other insurance products that are on the market today.”

Newton says Farm Bureau is surveying dairy farmers for their suggestions and their experience with risk management tools.  “We’re going to aggregate those results and then we’ll prepare the concept to try to submit it to USDA by April.”

Newton says Farm Bureau’s product would work in addition to either the Margin Protection Program or the LGM-Dairy program.  Producers could pick and choose which quarters to participate up to five quarters ahead.  The program would be open to all producers, regardless of whether they’re Farm Bureau members.

If approved by USDA, Newton says the product is expected to be available as early as 2018.

Producers can learn more and take the survey here.

 

 

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!