Disclaimers: The description of coverage in these pages is for informational purposes only. Actual coverage will vary based on the terms and conditions of the policy issued. The information described herein does not amend, or otherwise affect, the terms and conditions of any insurance policy issued by ProAg or any of its subsidiaries.

ProAg is an equal opportunity provider. In accordance with Federal law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating on the basis of race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs).

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DAIRY REVENUEPROTECTION(DRP)

DAIRY REVENUEPROTECTION(DRP)

We invite you to learn more from your trusted ProAg agenttoday about the DAIRY REVENUE PROTECTION insurance program.

Visit us at PROAG.COM/MYDAIRY for moreinformation or to contact a ProAg agent.

Risk Management for Today’s Dairy Operations

DAIRY REVENUE PROTECTION (DRP) is designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level. The expected revenue is based on futures prices for milk and dairy commodities and the amount of covered milk production elected by the dairy producer. The covered milk production is indexed to the state or region where the dairy producer is located.

50

APPROVED FOR SALE IN

COUNTIESALL

IN ALL

states

DAIRY REVENUE PROTECTION POLICY OVERVIEWDairy Revenue Protection o�ers two revenue pricing options:

Dairy Revenue Protection policies allow coverage levels from 70 percent to 95 percent of your expected quarterly revenue in five percent increments.

THE DAIRY PRODUCER HAS

The Dairy Revenue Protection policy provides insurance for the di�erence between the final revenue guarantee and actual milk revenue, times your actual share and protection factor. This loss needs to be caused by natural occurrences in market prices and yields in state-level or pooled production region. This policy does not insure against the death or other loss or destruction of dairy cattle.

A dairy producer can participate in both the Farm Service Agency’s Margin Protection Program and the Dairy Revenue Protection insurance program.

Coverage is established by adding quarterly coverage endorsements to the policy. The quarterly coverage endorsements correspond to the eight quarterly insurance periods available for purchase during the crop year. Producers may purchase coverage for up to five nearby quarters and have multiple endorsements for the same quarterly insurance period.

1. Select component or class pricing option

2. Select a quarterly insurance period

3. Declare milk production

4. Select a coverage level (from 70 to 95 percent of the revenue guarantee)

5. Declare the share percentage

6. Select a protection factor (1.00 – 1.50)

6BASIC DECISIONS TO MAKE:

DAIRY REVENUE PROTECTION BENEFITS

Benefits of purchasing DRP include:

• The flexibility of producer options

• Revenue risk coverage (quantity and price)

• Addresses coverage gaps in existing products

• Addresses basis risk through pricing options and optional production factor

• State-level or pooled production regions used • Reduced complexity

• Timely and market-based risk management

Dairy Revenue Protectionis an easy-to-use product which hasfew coverage declarations, minimal

reporting requirements and eligibilityfor all dairy producers. Premiumsare established and o�ered daily

using actuarially appropriatemethods.

The CLASS PRICING OPTION uses a combination of Class III and Class IV milk prices as a basis for determining coverage and indemnities.

The COMPONENT PRICING OPTION uses the component milk prices for butterfat, protein and other solids as a basis for determining coverage and indemnities. Under this option, you may select the butterfat test percentage and protein test percentage to establish your insured milk price.