The American Farm Bureau Federation and the American Farm Bureau Insurance Services are working together to create a dairy revenue protection insurance product which will be similar to crop revenue protection policies, a release on the Michigan Farm Bureau's website said.
The insurance would protect regional revenue, rather than just the price of milk or the income-over-feed-cost margin. The idea is to protect dairy farmers' revenue against not only milk price declines, but also against production declines, the release said.
Before the new insurance can become a reality, dairy farmer’s are needed to provide their knowledge and experience through a survey. The survey results will be kept confidential, and used to provide feasibility information to the federal government’s Federal Crop Insurance Corporation that operates under the USDA, the release said.
The survey is available at: https://www.farmbureausellscropinsurance.com/dairy-risk-survey/.
The intent is for the product to be available alongside Livestock Gross Margin-Dairy and not to replace Farm Bill products provided to dairy producers, the release said.
If the new insurance option is approved, it could be available in late 2018 or early 2019.