Dairy Revenue Protection Insurance

Dairy Revenue Protection (DRP) is a federally subsidized insurance program that helps protect your milk check when milk prices drop. It gives you the ability to set a revenue floor for your operation while still benefiting if prices move higher. With DRP, you select a coverage level based on expected milk prices and production for a specific time period. If market prices decline and your actual revenue falls below that level, the policy pays an indemnity to help offset the difference. Because the program is supported by the USDA, a portion of the premium is subsidized — making it a practical way to manage price risk without taking on the complexity of futures or forward contracting.