Applications for Ohio Farm Bureau Health Plans now available
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The American Farm Bureau Federation, in cooperation with American Farm Bureau Insurance Services, has developed a new risk management insurance product for dairy farmers. Approved by the Agriculture Department’s Federal Crop Insurance Corporation, “Dairy Revenue Protection” insurance will provide dairy farmers the opportunity to manage risk by focusing on revenue from milk sales.
“We know that the level of risk protection available to dairy farmers was inadequate and we saw a clear opportunity to help by specifically addressing the impact of milk price volatility on a dairy farmer’s revenue,” said AFBF President Zippy Duvall. “This coverage will help shield dairy farmers from unexpected declines in milk prices as well as unexpected declines in milk production by addressing overall revenue. We are excited about teaming up with American Farm Bureau Insurance Services to offer this new risk management tool to dairy farmers.”
“As a dairy farmer I know firsthand the challenges our industry is facing,” said Frank Burkett III, president of Ohio Farm Bureau. “To be part of an organization that thinks outside the box and takes action to create constructive steps to help farmers who are struggling is one of the many reasons I’m proud to be a Farm Bureau member.”
As designed, Dairy Revenue Protection will provide several levels of insurance coverage based on the value of the farmer’s milk. One option will use manufacturing milk futures prices, and the other option would be based on the value of milk components, such as milkfat, protein and other milk solids. A majority of dairy farmers selling milk in the U.S. are paid based on the amount of milkfat and protein in their milk.
Other than those dairy pricing options, Dairy Revenue Protection coverage otherwise functions similarly to area-based crop revenue protection insurance policies. The coverage would offer revenue guarantees based on futures prices, expected production and market-implied risk. The premiums for coverage will be subsidized.
It is expected that Dairy Revenue Protection policies will be available in late summer 2018.
This is an edited version of a release from American Farm Bureau.
This is a news release for use by journalists. Questions should be directed to Joe Cornely, 614-246-8230.
To grow a network and gain perspective and knowledge in the industry through personal and professional development has been invaluable. Every day I learn and grow.
The issue of property taxation remains as one of the biggest challenges our members face today. Ensuring agricultural property is valued for its agricultural potential and not development is critical to the continued success of Ohio agriculture.
Farm Bureau is what really got the word out. It’s been one of their goals to get this done.
I could not have done it without the resources I have found through Farm Bureau.
Because we are younger farmers just starting out, Farm Bureau has a lot of good opportunities and resources to help us grow in the future.
Through the Select Partner program, we became educated in farm insurance and weren't just selling policies. It became more and more clear why farmers need an advocate like Ohio Farm Bureau.
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