Executive Summary

Dairy Revenue Protection (Dairy-RP) participation figures provided by the USDA Risk Management Agency (RMA) were recently updated with values spanning through the end of the second week of Oct ’21. Highlights from the most recent report include:

• There were 9,433 Dairy-RP policies sold with active endorsements through the week ending Oct 15^th, up 133 from the previous week. Wisconsin led all states in the number of policies sold with active endorsements, followed by Minnesota, California and New York.
• Dairy-RP policies sold through the week ending Oct 15^th have covered a total of 156.2 billion pounds of milk, the equivalent of 23.4% of total 2019-2021 USDA projected milk production volumes. 93.6% of all milk covered has been at the 95% coverage level. California led all states in pounds of milk production covered within the Dairy-RP program through the week ending Oct 15^th Wisconsin, Texas and Idaho.
• 12-month rolling average Class III Milk volume figures reached a record high level during Jan ’21, prior to returning to a two year low level during the week ending Oct 15^th. 12-month rolling average Class III Milk open interest figures remained above the record low levels experienced throughout Mar ’20, reaching a 23 month high level during the week ending Oct 15^th.

Additional Report Details

Policies Sold:

There were 9,433 Dairy-RP policies sold with active endorsements through the week ending Oct 15^th, up 133 from the previous week. The weekly increase in Dairy-RP endorsements was the largest experienced throughout the past ten months, finishing above previous year seasonal levels for the second consecutive week. Dairy-RP endorsements had finished below previous year seasonal levels over 23 of the past 24 weeks through the week ending Oct 1^st, prior to finishing above previous year levels over the two most recent weeks of available data.

Dairy-RP policies have been sold throughout 46 states through the week ending Oct 15^th. Policies with active endorsements have been sold throughout 45 states, led by Wisconsin, Minnesota, California and New York. Wisconsin has accounted for over a quarter of all policies sold with active endorsements through the week ending Oct 15^th.

Pounds Covered:

Approximately 156.2 billion pounds of milk have been covered through the Dairy-RP program through the week ending Oct 15^th, which is the equivalent of 780,800 Class III milk contracts. 93.6% of all milk production covered has been at the 95% coverage level through the week ending Oct 15^th.

California led all states in pounds of milk production covered within the Dairy-RP program through the week ending Oct 15^th, followed by Wisconsin, Texas and Idaho. The aforementioned states combined to account for over half of all pounds of milk production covered within the Dairy-RP program.

CME Volume & Open Interest:

CME Class III Milk volume and open interest figures increased substantially following the initial wave of Dairy-RP sign-ups. More recently, 12-month rolling average Class III Milk volume figures reached a record high level during Jan ’21, prior to declining over the nine most recent months of data and returning to a two year low level during the week ending Oct 15^th. 12-month rolling average Class III Milk open interest figures remained above the record low levels experienced throughout Mar ’20, reaching a 23 month high level during the week ending Oct 15^th.

Dairy-RP milk production volumes covered through the week ending Oct 15^th were equivalent to 23.4% of total 2019-2021 USDA projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Oct 15^th was equivalent to just 0.7% of total 2019-2021 projected production volumes.