As the June 30 reinsurance deadline approaches, now is the time for producers to review their Dairy Revenue Protection (DRP) and Livestock Risk Protection (LRP) coverage — and ensure they’re aligned with current market conditions and 2026 program updates.

Transfer Deadline vs. New Enrollment

Already enrolled in DRP or LRP? If you’re considering switching providers, you must do so before June 30, when the new reinsurance year begins. First-time enrollees can sign up any time of year – this deadline does not apply to them.

Livestock Risk Protection: What You Need to Know

Livestock Risk Protection (LRP) is a price risk insurance, offered by the USDA Risk Management Agency, that pays if market prices fall below coverage price at the end of the insured period.

Things to note about LRP:

  • Cover now, pay later. Insurance premiums are only due after the insurance period ends.
  • The premium cost is subsidized by 35%-55% depending on the coverage level.
  • Timing matters. Unlike multi-peril crop insurance, the timing of LRP coverage selection can impact the protection you receive.
  • Regular reviews and use of additional risk management tools are essential. With market volatility at historic highs, producers should review their coverage regularly and consider complementing DRP or LRP with futures, options, or brokerage tools to enhance protection.

Want to learn more about LRP? Watch our recent webinar, “Unlock the Power of LRP: Exclusive Webinar for Cattle Producers.”

Dairy Revenue Protection: What You Need to Know

Dairy Revenue Protection (DRP) is a new federal crop insurance program approved by the USDA Risk Management Agency. DRP is designed to insure against unexpected declines in milk prices, unexpected declines in milk production, or both.

Things to note about DRP:

  • Price and production protection. Revenue is protected from changes in both prices and state level production.
  • Class and component pricing. Milk prices used in the policy are not one-size-fits-all and they can be customized to the producer’s specific operation and geographic location.
  • Subsidy and payment. The premium cost is subsidized by 44%-59% by the USDA and payments are not due until the end of the quarterly insurance period.
  • Uncapped payouts. The program has no caps on volumes or payouts and can be used by dairies large and small in all fifty states.

Frequently Asked Questions

Q: Do I have to cancel my old policy to switch providers?
A: No — you simply need to complete a transfer by June 30 with your new agent.

Q: Can I still sign up after June 30 if I’m new?
A: Yes, new enrollees can sign up anytime during the year.

Q: Can I use both DRP and LRP on my operation?
A: Yes — many dairy producers use both to protect milk revenue and crossbred calf value.

Time to Review Your Coverage

Are you happy with your coverage? Now is the ideal time to review your current coverage to ensure it aligns with your operational goals, reflects current market conditions, and provides the protection your operation needs.

Need help navigating your options?

Connect with a Pinion Risk Management advisor to schedule a free consultation, to talk through your insurance options before the June 30 deadline, or to take advantage of Pinion’s free DRP and LRP quote tool.

This publication is brought to you by Pinion Risk Management and is intended for informational purposes only. Nothing contained herein can or should be interpreted to take precedence over policy language, Federal Crop Insurance Corporation/Risk Management Agency regulation and Underwriting or Loss Adjustment rules.