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 fourth week of Mar ’22. Highlights from the most recent report include:
- There were 11,018 Dairy-RP policies sold with active endorsements through the week ending Mar 25th, up 13 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 Mar 25th have covered a total of 183.9 billion pounds of milk, the equivalent of 20.6% of total 2019-2022 actual & projected milk production volumes. 94.0% 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 Mar 25th, followed by Wisconsin, Texas and Idaho.
- 12-month rolling average Class III Milk volume figures reached a record high level during Jan ’21, prior to declining over much of 2021 but rebounding to a seven month high level during the week ending Mar 25th. 12-month rolling average Class III Milk open interest figures remained above the record low levels experienced throughout Mar ’20, reaching a four year high level during the week ending Mar 25th.
Additional Report Details
Policies Sold:
There were 11,018 Dairy-RP policies sold with active endorsements through the week ending Mar 25th, up 13 from the previous week. The weekly increase in Dairy-RP endorsements finished above previous year seasonal levels for the second consecutive week. 2022 YTD Dairy-RP policies sold with endorsements remain down 22.9% from the previous year.
Dairy-RP policies have been sold with active endorsements throughout 46 states through the week ending Mar 25th, 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 Mar 25th.
Pounds Covered:
Approximately 183.9 billion pounds of milk have been covered through the Dairy-RP program through the week ending Mar 25th, which is the equivalent of 919,600 Class III milk contracts. 94.0% of all milk production covered has been at the 95% coverage level through the week ending Mar 25th. 2022 YTD Dairy-RP pounds covered are down 22.8% from the previous year.
California led all states in pounds of milk production covered within the Dairy-RP program through the week ending Mar 25th, 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 much of 2021 but rebounding to a seven month high level during the week ending Mar 25th. 12-month rolling average Class III Milk open interest figures remained above the record low levels experienced throughout Mar ’20, reaching a four year high level during the week ending Mar 25th.
Dairy-RP milk production volumes covered through the week ending Mar 25th were equivalent to 20.6% of total 2019-2022 actual & projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Mar 25th was equivalent to just 0.8% of total 2019-2022 projected production volumes.