A new insurance option for dairy producers is in the works, that could be available in late 2018 or early 2019.
Both the American Farm Bureau (AFBF) and American Farm Bureau Insurance Services are creating a dairy revenue protection plan because many producers are experiencing problems with the Margin Protection Program for Diary Producers (MPP-Dairy).
On AgriTalk Tuesday, host Mike Adams spoke with John Newton, director of market intelligence with AFBF, and Jim Dickrell, editor of Dairy Herd Management, about the new insurance option.
“It gives every farmer in every state an independent revenue protection policy,” said Newton. “When milk prices rally, a farmer can use this policy to lock that in as an option. If prices move higher, they lose only the premium. If prices move lower, they get the difference.”
Listen to Newton discuss potential riders and how the proposed plan will work on AgriTalk above.