US: Dairy risk management; a need in today’s environment

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 ...