Protect Your Dairy Revenue
At GDI Insurance Agency, Inc, we understand that turning a profit has become a challenge for California dairy farms in recent years, as chronically low milk prices cut into the business’ bottom line. Many dairy farms’ income from milk has decreased significantly, while operational costs around the farm have stayed the same or risen. It’s getting harder and harder to make a living, that is why it is so important to have a California dairy revenue protection program.
There is a Solution!
California Dairy Revenue Protection Program
Dairy Revenue Protection is an area-based federal crop insurance product that provides quarterly revenue coverage for dairy farmers.
The program, which will be available starting in October 2018, allows farmers to set a guaranteed revenue they want to make on a certain amount of milk. Farmers can receive an indemnity payment if their actual revenue doesn’t meet the set level. Insurance costs are determined by expected milk prices and market risk.
Dairy farmers will now be able to protect their milk price on a quarterly basis, with an indemnity paid when the actual milk price falls below their insured milk revenue guarantee.
Contact GDI Insurance Agency, Inc today for your quote 209-634-2929.
How Expensive is The Dairy Revenue Protection Program?
The price of the policy is “actuarially fair”, meaning it will vary daily based on the farmer-selected parameters and on the expected prices and risk in the market. In general, higher levels of liability and more deferred policies will be more expensive to purchase.
The federal government will subsidize costs for farmers. If you would like to find out more about this program, please contact GDI Insurance Agency, Inc. at 1-209-634-2929.
Under Dairy Revenue Protection a farmer has only five decisions to make:
- The method to value milk in the policy
- The amount of milk production to cover
- The level of coverage (from 70 to 95 percent of the revenue guarantee)
- Which quarterly contracts he/she wishes to purchase
- The optional protection factor
Participating dairy farmers are not precluded from participation in USDA Farm Service Agency’s Margin Protection Program.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive dairy farm insurance quote!