Tridge summary
The article highlights the strengthening of Class III and IV milk prices in 2024, driven by cheese demand and export requirements for whey products. It emphasizes the importance of risk management for producers, especially with market volatility, and introduces the Dairy Revenue Protection (Dairy-RP) program. Managed by the USDA's Risk Management Agency, Dairy-RP aims to safeguard a significant portion of total milk production in the U.S. by providing a revenue guarantee based on future milk and dairy commodity prices. The program offers two pricing options and up to 95% coverage of expected quarterly revenue. Additionally, it provides a localized approach and financial support for producers, offering a crucial tool for financial stability in the dairy industry. Producers are encouraged to consider enrolling in both Dairy-RP and Dairy Margin Coverage for comprehensive risk management.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
As 2024 draws to a close, Class III milk prices have strengthened, driven by bullish cheese fundamentals and increased export demand for whey products. At the same time, Class IV prices have held firm, supported by lower butter inventories and strong demand. Producers now have a valuable opportunity to secure higher revenue floors in an increasingly volatile market by enrolling in the Dairy Revenue Protection (Dairy-RP) program. This program is a great addition to a sound risk management strategy, allowing producers to give added focus on managing volatility beyond the commodity sector and unpredictable geopolitical, macroeconomic and other unforeseen risks. What is Dairy-RP? Managed by the USDA’s Risk Management Agency (RMA), Dairy-RP is a program aimed at risk mitigation. Since 2020, a notable 20% to 25% of the total milk produced in the U.S. has been safeguarded by risk management programs. Available in all 50 states, the program is a comprehensive solution for understanding ...
Source: Progressivedairy
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