Dairy Revenue Protection is Here

Since 2014 the annual average U.S. all-milk price has fallen by more than 30 percent. This year, it is projected to be at the lowest level since 2009, at $16.10 per hundredweight. Milk prices are projected to improve slightly in 2019 to $16.75 per hundredweight, but ongoing trade tensions in July compelled USDA to push its 2019 milk price projection down by 45 cents per hundredweight. The 45-cent revision represents a nearly $1 billion decline in projected milk revenue – in just one month in 2019.  Dairy Revenue Protection was developed and approved through the Federal Crop Insurance Act’s 508(h) process, which allows private parties to develop insurance products that are in the best interests of producers, follow sound insurance principles and are actuarially appropriate.