DRP Results: Q3 2023

DRP Results: Q3 2023


Q3 2023 indemnities have not yet been released by USDA-RMA. As such, current quarter indemnity payments in this report are estimated using announced class and component prices and milk yields.


Overview & Key Points:


  • Estimated indemnity payments for Q3 2023 averaged $1.20 per cwt, the fourth largest to-date.
  • 23% of the U.S. milk supply was covered with DRP. This is the lowest share since the first quarter of 2020.
  • At the 95% coverage level, Q3 2023 indemnities would have been triggered for 96% of available days for Class III and 50% of available days for Class IV.




Coverage Performance by Horizon:



Participation & Performance:




Net to producers is equal to the indemnity paid minus the producer premium. Effective covered milk production is equal to the declared production times the protection factor. Class III versus IV coverage calculated as the effective covered milk production times the class price weighting factor or the component price weighting factor.

Disclaimer: HighGround Insurance Group (HGIG) is an agency affiliated with HighGround Dairy (HGD). HGIG is a licensed insurance agency in many US states. HighGround Dairy is a division of HighGround Trading (HGT), an Introducing Broker (IB) registered under United States Laws. Nothing contained herein shall be construed as a recommendation to buy or sell commodity futures or options on futures. This communication is intended for the sole use of the intended recipient. Futures and options trading involves substantial risk and is not suitable for all investors.