USDA's Risk Management Agency (RMA) is modifying the sales
period over weekends for Dairy Revenue Protection (DRP) because of the high
volatility of milk prices. Starting June 5, the sales period will begin no
later than 4:30 p.m. Central Time (CT) when the coverage prices and rates are
published and will end at 9:00 a.m. CT of the following business day or 9:00
a.m. CT on Sunday, whichever is earlier. The next sales period will begin no
later than 4:30 p.m. CT on the following business day. This change only impacts
when milk producers can purchase DRP quarterly endorsements, not the timing of
indemnity payments. This modification will also be incorporated into the DRP
policy for the 2022 crop year.
"The DRP program is an excellent risk management tool
for dairy producers, providing peace of mind during unpredictable market
fluctuations such as the dairy industry is experiencing now," RMA
Administrator Martin Barbre said. "USDA wants to be sure that we make the
necessary adjustments to ensure that the Federal crop insurance program
continues to serve the risk management needs of our nation's producers during
this unprecedented time."
DRP is designed to insure for unexpected declines in the
quarterly revenue from milk sales compared with a guaranteed coverage level.
The expected revenue is based on futures prices for milk and dairy commodities
and the amount of covered milk production elected by the dairy producer. The
covered milk production is indexed to the state or region where the dairy
producer is located. Dairy producers to date have purchased $11.9 billion of
2020 DRP coverage, with premiums totaling $145.9 million. Total current DRP
purchases represent over 25% of the milk likely to be produced in the United
States in 2020.
For more information about DRP, visit RMA's website or
contact your local crop insurance agent using the RMA Agent Locator.
RMA has announced many other flexibilities starting on March
27. See all RMA Managers Bulletins for more detailed information. RMA staff are
working with Approved Insurance Providers and other customers by phone, mail
and electronically to continue supporting crop insurance coverage for
producers. Farmers with crop insurance questions or needs should continue to
contact their insurance agents about conducting business remotely (by telephone
or email).