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 September. Highlights from the most recent report include:
- There were 6,876 Dairy-RP policies sold with active endorsements through the week ending Sep 18th, up 235 from the previous week. Wisconsin led all states in the number of policies sold with active endorsements, followed by Minnesota, California and Michigan.
- Dairy-RP policies sold through the week ending Sep 18th have covered a total of 102.3 billion pounds of milk, the equivalent of 15.4% of total 2019-2021 USDA projected milk production volumes. 94.8% 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 Sep 18th, followed by Wisconsin, Idaho and Texas.
- 12-month rolling average Class III Milk volume figures reached a record high level during the first week of September, prior to declining throughout the most recent two weeks of data. 12-month rolling average Class III Milk open interest figures remained above the record low levels experienced throughout Mar ’20 but declined to a five week low level.
Additional Report Details
Policies Sold:
There were 6,876 Dairy-RP policies sold with active endorsements through the week ending Sep 18th, up 235 from the previous week. The increase in Dairy-RP endorsements was the largest experienced throughout the past 14 weeks and the second largest experienced on record.
Dairy-RP policies have been sold throughout 46 states through the week ending Sep 18th. Policies with active endorsements have been sold throughout 45 states, led by Wisconsin, Minnesota, California and Michigan. Wisconsin has accounted for nearly 30% of all policies sold with active endorsements through the week ending Sep 18th.
Pounds Covered:
Approximately 102.3 billion pounds of milk have been covered through the Dairy-RP program through the week ending Sep 18th, which is the equivalent of 511,300 Class III milk contracts. 94.8% of all milk production covered has been at the 95% coverage level through the week ending Sep 18th.
California led all states in pounds of milk production covered within the Dairy-RP program through the week ending Sep 18th, followed by Wisconsin, Idaho and Texas. 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 the first week of September, prior to declining throughout the most recent two weeks of data. 12-month rolling average Class III Milk open interest figures remained above the record low levels experienced throughout Mar ’20 but declined to a five week low level.
Dairy-RP milk production volumes covered through the week ending Sep 18th were equivalent to 15.4% of total 2019-2021 USDA projected milk production volumes. For comparison, CME Class III Milk open interest as of the week ending Sep 18th was equivalent to just 0.6% of total 2019-2021 projected production volumes.