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 third week of April. Highlights from the most recent report include:

• There were 3,550 Dairy-RP policies sold through the week ending Apr 19^th, with 2,063 of the policies having active endorsements. Wisconsin led all states in the number of policies sold with active endorsements, followed by Minnesota and Michigan.
• Dairy-RP policies sold through the week ending Apr 19^th have covered a total of 22.84 billion pounds of milk, the equivalent of approximately 114,200 Class III milk contracts and 10.4% of total 2019 USDA projected milk production volumes. 93% 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 Apr 19^th, followed by California, Idaho 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. Class III Milk open interest declined to a seven month low during the week ending Apr 12^th, however, prior to rebounding slightly throughout the most recent week of available data.

Additional Report Details

Policies Sold:

There were 3,550 Dairy-RP policies sold through the week ending Apr 19^th, up 46 from the previous week. Of the policies sold, 2,063 had active endorsements through the week ending Apr 19^th, up 36 from the previous week.

Dairy-RP policies have been sold throughout 42 states through the week ending Apr 19^th. Policies with active endorsements have been sold throughout 38 states, led by Wisconsin, Minnesota and Michigan. Wisconsin has accounted for over a third of all policies sold with active endorsements through the week ending Apr 19^th.

Pounds Covered:

Approximately 22.84 billion pounds of milk have been covered through the Dairy-RP program through the week ending Apr 19^th, which is the equivalent of approximately 114,200 Class III milk contracts. 93% of all milk production covered has been at the 95% coverage level through the week ending Apr 19^th.

Wisconsin has led all states in pounds of milk production covered within the Dairy-RP program through the week ending Apr 19^th, followed by California, Idaho 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. Class III Milk open interest declined to a seven month low during the week ending Apr 12^th, however, prior to rebounding slightly throughout the most recent week of available data.

Dairy-RP milk production volumes covered through the week ending Apr 19^th are equivalent to 10.4% of total 2019 USDA projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Apr 19^th was equivalent to 1.9% of 2019 projected production volumes.