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 March. Highlights from the most recent report include:

  • There were 2,671 Dairy-RP policies sold through the week ending Mar 8th, with 1,551 of the policies having active endorsements. Wisconsin led all states in the number of policies sold with active endorsements, followed by Minnesota, Michigan and Pennsylvania.
  • Dairy-RP policies sold through the week ending Mar 8th have covered a total of 18.98 billion pounds of milk, the equivalent of approximately 94,800 Class III milk contracts and 8.6% of total 2019 USDA projected milk production volumes. 92% 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 Mar 8th, followed by Idaho, California and Minnesota.
  • CME Class III Milk volume and open interest figures increased substantially following the initial wave of Dairy-RP sign-ups. Class III Milk volumes reached a 22 month high during Oct ’18 while Class III Milk open interest reached a 19 month high during Feb ’19.

Additional Report Details

Policies Sold:

There were 2,671 Dairy-RP policies sold through the week ending Mar 8th, up 187 from the previous week. Of the policies sold, 1,551 had active endorsements through the week ending Mar 8th, up 104 from the previous week.

Dairy-RP policies have been sold throughout 37 states through the week ending Mar 8th. Policies with active endorsements have been sold throughout 35 states, led by Wisconsin, Minnesota, Michigan and Pennsylvania. Wisconsin has accounted for over a third of all policies sold with active endorsements through the week ending Mar 8th.

Pounds Covered:

Approximately 18.98 billion pounds of milk have been covered through the Dairy-RP program through the week ending Mar 8th, which is the equivalent of approximately 94,800 Class III milk contracts. 92% of all milk production covered has been at the 95% coverage level through the week ending Mar 8th.

Wisconsin has led all states in pounds of milk production covered within the Dairy-RP program through the week ending Mar 8th, followed by Idaho, California and Minnesota. The aforementioned states combined to account for nearly 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. Class III Milk volumes reached a 22 month high during Oct ’18 while Class III Milk open interest reached a 19 month high during Feb ’19.

Dairy-RP milk production volumes covered through the week ending Mar 8th are equivalent to 8.6% of total 2019 USDA projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Mar 8th was equivalent to 2.1% of 2019 projected production volumes.

2019-03-11T10:44:43+00:00