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

• There were 1,387 Dairy-RP policies sold through the week ending Dec 14^th, with 720 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 14^th have covered a total of 10.42 billion pounds of milk, the equivalent of approximately 52,100 Class III milk contracts but just 4.7% of total 2019 USDA projected milk production volumes. 85% 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 14^th, followed by Idaho, Minnesota and California.
• 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 1,387 Dairy-RP policies sold through the week ending Dec 14^th, up 276 from the previous week. Of the policies sold, 720 had active endorsements through the week ending Dec 14^th, up 212 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 34 states through the week ending Dec 14^th. Policies with active endorsements have been sold throughout 32 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 14^th.

Pounds Covered:

Approximately 10.42 billion pounds of milk have been covered through the Dairy-RP program through the week ending Dec 14^th, which is the equivalent of approximately 52,100 Class III milk contracts. 85% of all milk production covered has been at the 95% coverage level through the week ending Dec 14^th.

Wisconsin has led all states in pounds of milk production covered within the Dairy-RP program through the week ending Dec 14^th, followed by Idaho, Minnesota and California.

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 14^th are equivalent to just 4.7% of total 2019 USDA projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Dec 14^th was also equivalent to 2.5% of 2019 projected production volumes.