New Type of Insurance: Dairy Gross Margin
A new type of crop insurance has been added to the Risk Management Agency list recently, which will provide protection against declines in a dairy farmer's gross margin (the difference between the market value of milk and feed costs). Expected and Actual gross margin numbers are calculated using futures prices (never based on farmer's actual sales or expenses) and if the actual gross margin is less than the expected gross margin, the farmer will receive an indemnity payment.
Check out this Presentationto learn more.