Dairy Revenue Protection (DRP) is an area-based coverage that protects against a combination of price and production losses during 3 month periods (quarters) in the future. Producers can buy up to 95% coverage on their expected revenue, which is a combination of their insured pounds and one of two pricing options:
Class Pricing is a combination of the Class III and Class IV milk prices, weighted using a factor that the producer elects.
Component Pricing uses the 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 milk price.
Choose the amount of production (lbs) you want to cover for your operation, then choose between Class Pricing or Component Pricing options.
As an area-based policy, your claims are automatically calculated and paid by the insurance company.
The Dairy Revenue Protection plan is subsidized between 44% and 59%, which provides a unique opportunity for market-beating downside price protection.
— The Assure Group
The Assure Group
Kurz Purdue Technology Center
1281 Win Hentschel Blvd
West Lafayette, IN 47906