Dairy Revenue Protection

Dairy Revenue Protection (DRP) is a flexible federal insurance tool that protects against unexpected declines in quarterly milk revenue caused by market volatility or yield losses. Unlike traditional margin programs, DRP allows producers to choose between Class or Component pricing to match their specific herd’s output and regional market conditions. Ultimately, DRP provides a customizable safety net that provides a vital financial floor and helps operations maintain cash flow and long-term stability in a complex global market.

Milk prices are likely to stay flat into 2026 as growing milk supplies and beef-on-dairy incentives outweigh steady demand, keeping margins tight and buyers on the sidelines.