A pooled production region is a group of states used to determine the milk production per cow within a region identified in the Dairy Revenue Protection Commodity Exchange Endorsement.
Dairy-RP provides insurance only for the difference between the final revenue guarantee and actual milk revenue multiplied by actual share and protection factor, caused by natural occurrences in market prices and yields in the pooled production region.
The actual value is determined by multiplying the actual butterfat, protein and other solids prices x the final component tests x covered milk production x yield adjustment factor ÷ 100.
The actual value is determined by multiplying the actual Class III and Class IV prices x the declared pricing elections x covered milk production x yield adjustment factor ÷ 100.
The final revenue guarantee is determined by multiplying the expected butterfat, protein and other solids prices x the final component tests x covered milk production ÷ 100.
The final revenue guarantee is determined by multiplying the expected Class III and Class IV prices x the declared pricing elections x covered milk production ÷ 100.
The final revenue guarantee is based on expected yield multiplied by expected price along with the coverage level selected. Expected milk yields are based on state-level National Agricultural Statistics Service (NASS) estimates of milk production per cow in the pooled production region. Growers will have several
Yes. You may choose either pricing option on separate quarterly coverage endorsement provided it is not covering the same milk.
The Component Pricing Option uses the component milk prices for butterfat, protein, and other solids as a basis for determining coverage and indemnities. The insured selects the declared butterfat test and declared protein test and the other solids test is fixed at 5.7 to establish the
The Class Pricing Option uses an insured’s election of a combination of Class III and Class IV milk prices as a basis for determining coverage and indemnities.
