Dairy Revenue Protection

Customizable Risk Management for Farms of all Sizes

The Dairy Revenue Protection insurance tool enables dairy farmers to protect revenue from adverse changes in milk prices, allowing them to lock in profits and perhaps even capture upside potential.  

What is Dairy Revenue Protection?

Run by the USDA’s Risk Management Agency, Dairy Revenue Protection is available through approved insurance agents in SA Stone Wealth Management Inc. Several members of StoneX Financial Inc. - FCM Division, which focus on livestock risk management, are registered with SA Stone to provide Dairy Revenue Protection to their clients.

How does Dairy Revenue Protection work?

Mechanics

Premium Subsidies

  • Available in all counties, in all 50 states
  • Can be purchased on a quarterly basis
  • Uses a combination of Class III and Class IV milk prices as a basis for determining coverage and indemnities
  • Available for five (5) quarters out
  • Premium is due after the quarter covered

90% and 95% Coverage = 44%

85% Coverage = 49%

80% Coverage = 55%

 Why purchase Dairy Revenue Protection now?

To take advantage of current market conditions and program subsidies, dairy farmers can purchase Dairy Revenue Protection from a USDA-approved crop insurance agent. By working with one of StoneX's knowledgeable agents, farmers can create a risk management plan that fits any operation.

KEY: As long as these market dynamics persist, farmers will have a unique opportunity to purchase significantly subsidized dairy margin coverage at a premium that is lower than it would be under more volatile market conditions.

How can I find pricing information on Dairy Revenue Protection?

The FCM Division of StoneX Financial Inc. has partnered with Ag Hedge Desk to create a Dairy Revenue Protection decision tool that enables producers to: 

  1. Find baseline coverage based on their exposure to Class III and Class IV CME milk futures prices, quarterly production, state, and other metrics
  2. Compare alternatives
  3. Optimize coverage

Simple and intuitive, this tool can deliver straight-forward views into what Dairy Revenue Protection might be right for you.

Try our pricing tool here

Why purchase Dairy Revenue Protection through StoneX?

No matter where crop insurance is purchased, the rates and subsidy percent will always be the same. The only difference between agents is dairy knowledge and their ability to help producers optimize coverage. Producers must decide when to buy coverage, how many pounds, at what level and type, and what protection factor is best for their individual situation.

With decades of experience and access to deep liquidity, the professional advisors on our Dairy Team can help you devise and purchase a Dairy Revenue Protection policy uniquely suited to your needs. This includes not only the opportunity to protect revenue and lock in profits, but also the potential to capture some benefits if CME milk prices continue to rise.

If you are interested in taking advantage of this unique opportunity in this current marketplace, please contact us. 


Meet the Team

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Chicago, IL 60604
Tel:+1 (312) 456-3609

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Dublin 4 Ireland
Tel: +35 31 634-9140

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One Raffles Place
#12-62 Tower 2
1 Raffles Place
Singapore 048616
Tel: +65 6309 3994

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The trading of commodities and derivatives such as futures, options, and swaps involves substantial risk of loss and may not be suitable for all investors. Advisory services as well as the trading of futures and options is available through various subsidiaries of StoneX Group Inc. including but not limited to the FCM Division of StoneX Financial Inc.  Public Disclosures for the FCM Division of StoneX Financial Inc. The trading of over-the-counter products or swaps is available through subsidiary StoneX Markets LLC to individuals or firms who qualify under CFTC rules as an eligible contract participant. Please click here for the full disclaimer.

 

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