Producers have the option to buy additional protection coverage through a protection factor. The protection factor does not increase the final revenue guarantee but is applied to the expected revenue for the purposes of calculating a producer premium. If an indemnity is earned on the policy,
The actual share is the percentage of milk owned by the producer covering said milk.
Dairy-RP is available for purchase every business day when the coverage prices and rates are validated and published on the USDA RMA website. In contrast, LGM-Dairy is available once per month, typically on the last Friday of each month, while DMC is an annual decision, with
Dairy-RP premiums will change based on the risk environment however premiums are actuarially appropriate and subsidies range from 44%-59% based on the desired level of coverage selected. In contrast, LGM-Dairy subsidies range from 18%-50%, with policies being paid out based on an income-over-feed margin. DMC payouts
Dairy-RP has no caps on volumes or payouts and can be used by dairies large and small in all fifty states to cover up to 100% of their milk production volumes. In comparison, LGM-Dairy is capped at 24 million pounds per marketing year while DMC is
Can dairy producers participate in both Dairy-RP and Dairy Margin Coverage (DMC, previously known as MPP-Dairy)?
Yes, dairy producers may participate in both Dairy-RP and DMC simultaneously and on the same pounds of production, consistent with MPP-Dairy.
Yes, dairy producers may have LGM-Dairy and Dairy-RP policies in effect for the same crop year, but only one policy, either LGM-Dairy or Dairy-RP can have endorsements in effect for the quarterly insurance period. For example, if a Dairy-RP policy and LGM-Dairy policy are both insuring
Dairy-RP premium subsidy is as follows: Coverage Level 70% 75% 80% 85% 90% 95% Premium Subsidy 59% 55% 55% 49% 44% 44%
Dairy-RP is available for purchase from your local livestock insurance agent. You can find a crop insurance agent using the Agent Locator tool on the Risk Management Agency (RMA) website.
Yes. The subsidy for qualifying beginning farmers or ranchers provides an additional 10 percent of premium subsidy. For more information on the beginning farmer and rancher program, go to the Risk Management Agency’s website.