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 first week of December. Highlights from the most recent report include:

• There were 1,111 Dairy-RP policies sold through the week ending Dec 7^th, with 508 of the policies having active endorsements. The weekly increases in policies sold and policies with active endorsements were the largest experienced since the initial week of sales. Wisconsin led all states in the number of policies sold with active endorsements, followed by Idaho, California and Minnesota.
• Dairy-RP policies sold through the week ending Dec 7^th have covered a total of 8.26 billion pounds of milk, the equivalent of approximately 41,300 Class III milk contracts but just 3.7% of total 2019 USDA projected milk production volumes. 82% of all milk covered has been at the 95% coverage level. Wisconsin has led all states in pounds of milk production covered within the Dairy-RP program through the week ending Dec 7^th, accounting for nearly one fifth of all covered pounds, followed by Minnesota and Idaho.
• CME Class III Milk volume and open interest figures have increased substantially since Dairy-RP sign-ups began on Oct 9^th. Class III Milk volumes reached a 22 month high during the week ending Oct 26^th while Class III Milk open interest reached a 16 month high during the week ending Nov 30^th.

Additional Report Details

Policies Sold:

There were 1,111 Dairy-RP policies sold through the week ending Dec 7^th, up 149 from the previous week. Of the policies sold, 508 had active endorsements through the week ending Dec 7^th, up 122 from the previous week. The weekly increases in both policies sold and policies sold with active endorsements were the largest experienced since the initial week of sales.

Dairy-RP policies have been sold throughout 31 states through the week ending Dec 7^th. Policies with active endorsements have been sold throughout 27 states, led by Wisconsin, Idaho, California and Minnesota. Wisconsin has accounted for over one third of all policies sold with active endorsements through the week ending Dec 7^th.

Pounds Covered:

Approximately 8.26 billion pounds of milk have been covered through the Dairy-RP program through the week ending Dec 7^th, which is the equivalent of approximately 41,300 Class III milk contracts. 82% of all milk production covered has been at the 95% coverage level through the week ending Dec 7^th.

Wisconsin has led all states in pounds of milk production covered within the Dairy-RP program through the week ending Dec 7^th, accounting for just under one fifth of all covered pounds, followed by Minnesota and Idaho.

CME Volume & Open Interest:

CME Class III Milk volume and open interest figures have increased substantially since Dairy-RP sign-ups began on Oct 9^th. Class III Milk volumes reached a 22 month high during the week ending Oct 26^th while Class III Milk open interest reached a 16 month high during the week ending Nov 30^th.

Dairy-RP milk production volumes covered through the week ending Dec 7^th are equivalent to just 3.7% of total 2019 USDA projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Dec 7^th was also equivalent to 2.4% of 2019 projected production volumes.