Beginning with the 2027 crop year, several important updates to Livestock Risk Protection and Dairy Revenue Protection (DRP) will give producers more flexibility and opportunities to protect their operations. 

Insuring Further into the Future 

Starting on July 1, 2026, dairy producers will have the ability to insure the price of their cull cows using Livestock Risk Protection (LRP) even further into the future. The offers have expanded all the way from just 13 weeks up to 52 weeks into the future. “Insuring near the cash value of these cull cows for up to an entire year into the future is really going to help maintain profitability on dairy operations,” says GreenStone’s Crop Insurance Specialist Cameron Victor. 

The weight limit for cull cows has also increased from 1,500 pounds to 1,700 pounds. To help dairy producers maintain profitability through fluctuating markets, this program uses a similar dynamic price adjustment factor to the unborn calves policy that uses the futures market to insure these animals near their estimated cash value. 

A Diversified Approach to Risk Management 

Another significant change going into the new crop year is the ability for producers to use both Livestock Gross Margin (LGM) alongside Dairy Revenue Protection (DRP) or LRP to insure the same commodity during the same time period. Historically, producers have had to decide between using LGM or DRP/LRP to insure their commodity.  

For dairy producers, while the same total of head or pounds of milk cannot be insured twice, production can now be split between two insurance products to hedge price and margin risk at the same time. Class III milk price for individual months and feed risk can be managed with LGM, while component values and class IV milk can be hedged with DRP.  

Because LGM can be purchased by the month and not an entire quarter, producers have more time to cover their total milk production if they don’t finish by the end of the DRP sales period. “Ultimately, this change will allow livestock producers a more diversified strategy to managing their risk,” says Cameron. “These expanded coverage options can help producers take advantage of record prices into the next year.” 

Expert Tools and Guidance for Your Operation 

When it comes to choosing the best risk management strategy for your operation, the most important piece is working with a dedicated Livestock Insurance Specialist. At GreenStone, our team of specialists focus exclusively on dairy and livestock risk management and work one-on-one with producers to determine the right coverage options. GreenStone’s exclusive Livestock Insurance Analyzer tool also allows producers to analyze policy options, track endorsements purchased, and model customized “what if” scenarios based on price movements and coverage levels. 

Our dedicated team of livestock crop insurance specialists are here to answer any questions you might have on these updated LRP coverage options or other livestock insurance options to benefit your farm. Contact your local branch to learn more!  

 

To view the article in the online 2026 Summer Partners Magazine, click here.