The 2020 milk price roller coaster has more and more dairy farmers considering their risk management options. Maryland & Virginia’s August member webinar focused on the various risk management programs available to members through the co-op and through government programs.
Katie Burgess, Director of Risk Management for Blimling and Associates, will led the session. She covered the co-op’s programs that Blimling administers, plus the Dairy Margin Coverage (DMC) Program and the Dairy Revenue Protection (DRP) Program.
Maryland & Virginia has had a forward contracting program for more than a decade. We have worked with Blimling and Associates to provide dairy risk management services to our members in three different forward contracting options:
- Forward Contract Price, which is available based on the Class I mover, or the Class III or Class IV prices.
- Minimum Contract Price, which sets a price floor.
- Class III or Class IV Min/Max Contract, which sets a price range or collar.
Both the Dairy Margin Coverage (DMC) and the Dairy Revenue Protection (DRP) programs are risk management tools authorized by Congress. The programs differ in that DMC allows farmers to lock in a margin, whereas the DRP sets a milk price floor. The above chart touches on a few of the key differences.
If you’re interested in pursuing DMC, be sure to reach out to your local Farm Services Agency office, and take note that the sign-up period for 2021 starts October 13, 2020. If DRP is more appealing, make contact with an authorized crop insurance salesperson to discuss next steps.
There are a number of resources on the Member Portal dedicated to the Maryland & Virginia’s Forward Contracting program, plus links to the Dairy Margin Coverage and Dairy Revenue Protection programs.
From the portal, members can view a daily bid sheet that Blimling and Associates updates every weekday. The site also has an overview of each of the programs, and it has links to the Forward Contracting Application and the program’s terms and conditions.
To access this information from the portal, click on the “prices” icon from the dashboard.
Blimling and Associates posts daily bid prices on our Member Portal every business day. Maryland & Virginia’s Forward Contracting Program is open Monday-Thursday from 8:30 a.m. to 5:00 p.m. EST and Friday 8:30 a.m. to 2:00 p.m. EST.
When you call the toll-free contracting line, Blimling staff will share market data, and discuss alternatives, but not make recommendations. Please have your producer number ready when calling to discuss contracting.
For more information or to contract milk, contact Blimling Staff at 1-800-945-8891 or 608-839-5565.
If you couldn’t attend the webinar, you can still enjoy the recording. Log on to the Member Portal and click on Resources. Webinar recordings are listed under “Member News & Webinars.”