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Farm Bureau’s dairy revenue insurance approved

 

The American Farm Bureau Federation expects to offer dairy farmers a new revenue insurance policy later this summer.

AFBF’s market intelligence director John Newton tells Brownfield they’ve partnered with American Farm Bureau Insurance Services to develop a dairy revenue protection program that models crop insurance products.  “It protects the quarterly revenue for milk sales and the value of milk in the policy is based on futures prices.”

He says this will be the first revenue-based insurance product for dairy farmers instead of a margin insurance.  “We really wanted to get away from the one-sized fits all approach, recognizing that the value of milk is different on every farm across the United States and our policy really has the flexibility to capture the different values of milk.”

He says the program doesn’t need Congressional approval, but rather is approved by Federal Crop Insurance Corporation and delivered through USDA’s Risk Management Agency.

AUDIO: Interview with John Newton