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 third week of Apr ’22. Highlights from the most recent report include:

• There were 11,080 Dairy-RP policies sold with active endorsements through the week ending Apr 22^nd, 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 Apr 22^nd have covered a total of 187.6 billion pounds of milk, the equivalent of 21.0% of total 2019-2022 actual & projected milk production volumes. 94.1% 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 Apr 22^nd 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 an eight month high level throughout the week ending Apr 22^nd. 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 Apr 22^nd.

Additional Report Details

Policies Sold:

There were 11,080 Dairy-RP policies sold with active endorsements through the week ending Apr 22^nd, up 13 from the previous week. The weekly increase in Dairy-RP endorsements finished below previous year seasonal levels for third consecutive week. 2022 YTD Dairy-RP policies sold with endorsements have declined 25.4% from the previous year.

Dairy-RP policies have been sold with active endorsements throughout 46 states through the week ending Apr 22^nd, 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 Apr 22^nd.

Pounds Covered:

Approximately 187.6 billion pounds of milk have been covered through the Dairy-RP program through the week ending Apr 22^nd, which is the equivalent of 938,200 Class III milk contracts. 94.1% of all milk production covered has been at the 95% coverage level through the week ending Apr 22^nd. 2022 YTD Dairy-RP pounds covered are down 15.4% from the previous year.

California led all states in pounds of milk production covered within the Dairy-RP program through the week ending Apr 22^nd, 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 an eight month high level over the week ending Apr 22^nd. 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 Apr 22^nd.

Dairy-RP milk production volumes covered through the week ending Apr 22^nd were equivalent to 21.0% of total 2019-2022 actual & projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Apr 22^nd was equivalent to just 0.8% of total 2019-2022 projected production volumes.