Wisconsin dairy farmers may benefit from new federal program
MADISON, Wis. (AP) -- A new federal crop insurance program may help Wisconsin dairy farmers protect against low milk prices.
Wisconsin Public Radio reports that the American Farm Bureau Federation and its insurance company recently announced the Dairy Revenue Protection program, which starts in October.
The program allows farmers to set the amount they want to make on a certain amount of milk. Farmers can receive an indemnity payment if their actual revenue doesn't meet the set level. Insurance costs are determined by expected milk prices and market risk.
Wisconsin Farm Bureau President Jim Holte says farmers might not find the program affordable after four years of low prices. But he says farmers may later be able to lock in a more profitable level.
The federal government will subsidize costs for farmers.