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 Mar ’22. Highlights from the most recent report include:

• There were 11,033 Dairy-RP policies sold with active endorsements through the week ending Apr 1^st, up 15 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 1^st have covered a total of 184.9 billion pounds of milk, the equivalent of 20.7% 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 Apr 1^st 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 Apr 1^st. 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 1^st.

Additional Report Details

Policies Sold:

There were 11,033 Dairy-RP policies sold with active endorsements through the week ending Apr 1^st, up 15 from the previous week. The weekly increase in Dairy-RP endorsements finished above previous year seasonal levels for the third consecutive week. 2022 YTD Dairy-RP policies sold with endorsements remain down 21.2% from the previous year.

Dairy-RP policies have been sold with active endorsements throughout 46 states through the week ending Apr 1^st, 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 1^st.

Pounds Covered:

Approximately 184.9 billion pounds of milk have been covered through the Dairy-RP program through the week ending Apr 1^st, which is the equivalent of 924,600 Class III milk contracts. 94.0% of all milk production covered has been at the 95% coverage level through the week ending Apr 1^st. 2022 YTD Dairy-RP pounds covered are down 18.3% from the previous year.

California led all states in pounds of milk production covered within the Dairy-RP program through the week ending Apr 1^st, 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 Apr 1^st. 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 1^st.

Dairy-RP milk production volumes covered through the week ending Apr 1^st were equivalent to 20.7% of total 2019-2022 actual & projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Apr 1^st was equivalent to just 0.7% of total 2019-2022 projected production volumes.