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April 11, 2020

Dumped Milk Will Be Counted For DRP, LGM-Dairy Insurance

 |  By: Jim Dickrell

The United States Department of Agriculture’s (USDA) Risk Management Agency (RMA) has ruled that dumped milk, due to supply disruptions caused by the COVID-19 pandemic, can still be counted for indemnity payments under the Dairy Revenue Protection (DRP) insurance and the Livestock Gross Margin for Dairy (LGM-D) programs.

“DRP is a vital risk management tool for our dairy farmers, especially during times like these, and USDA wants to ensure producers continue to get the coverage they purchased,” says RMA Administrator Martin Barbre.

For the 2020 calendar year, RMA is allowing Approved Insurance Providers to count dumped milk toward the milk marketings for DRP or LGM-D regardless of whether the milk was sold. Producers will still have to provide their insurance providers supporting documentation from their co-op or milk handler verifying the actual pounds dumped and that the milk was dumped, says Barbre.

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