A new dairy revenue protection insurance product—similar to crop revenue protection policies—is in development through a collaborative effort between the American Farm Bureau Federation (AFBF) and American Farm Bureau Insurance Services (AFBIS).
The product would protect regional revenue (milk price x state-level milk yield per cow) rather than just milk price or the income-over-feed-cost margin. By protecting revenue this product would offer regional risk management against both milk price and/or production declines.
To support market research and gauge interest in the new insurance product, dairy producers are being asked to complete this brief online survey.
Survey results are confidential and will be aggregated to provide market feasibility information to USDA’s Federal Crop Insurance Corporation.
The intent is for the product to be positioned alongside LGM-Dairy and it will not replace Farm Bill products provided to dairy producers. AFBF/AFBIS are preparing a concept proposal to submit to USDA in April 2017. If approved, the product could be available in late 2018 or early 2019.