Tips and Tricks

Be prepared with Dairy Revenue Protection (DRP) quoting

DRP_main

Are you ready for Dairy Revenue Protection (DRP) sales? In a continued effort to make sure you’re ready for the season, our Dairy Revenue Protection quoting system is now available! Quote and report on various pricing options and quarterly coverage endorsements through NAU Country’s EASYquote® system.

Important Note: Due to DRP having open sales between 4 p.m. - 9 a.m., it is important to remember that you will not see the current date in your Sales Date field until 4 p.m. Our quoting system will allow you to quote a pricing option from a previous day’s Sales Period, even though that price may not still be available when processing your application.

To begin quoting:

  • Log into the 2019 EASYquote system.
  • On the opening page, you will have folder options, including “MPCI”, “Hail”, “DRP”, and “Open”.
  • Select “DRP”.
    • Opening a DRP quote from an existing policy will not be available on this first release.

Quick Line Attributes

  • Under the Coverage Info section, enter in the following information:
    • State: Select the state where the livestock is located.
    • County: Select the county where the livestock is located, not where the insured resides.
    • Crop: Milk will automatically default into the field.
    • Plan: Dairy Revenue Protection will automatically default into the field.
    • Interval: Select your “Insured Quarter”.
    • Pricing Option: Select either the “Class Price Option” or the “Component Price Option”.
    • Level: Select a level of coverage between 70-95%.
    • Protection Factor: Select a protection factor between 1.00-1.50.
    • Sales Date: Select the Sales Period Date to use for pricing. The system will default to the last available date.
      • Our quoting system will allow you to quote a pricing option from the previous day’s Sales Period, even though that price may not be available when processing your application.
  • Under the Quote Line Info section, enter in the following information:
    • Endorsement: This field will be filled in automatically by the system once the DRP Attributes are saved. It is for internal use only.
    • Share: Enter in the insured share percent. For example, enter in 1.00 for 100%.
  • Under the DRP Plan section, enter in the following information: 
    • Declared Coverage Milk Production:
      • Fill in the amount of Covered Milk Production in pounds (lbs.).
      • The system will default to 1,000,000 lbs.
    • Expected Production per Cow:
      • This field is informational only.
      • This value is pulled from the Actuarials and is based on your region and insured quarter.
    • Sales Period Notification:
      • A notification will display updating users when the Sales Period occurs for the insured quarter that is selected.
  • DRP_QuoteAttributesThe Class Pricing section will display different fields depending on what pricing option the insured chooses, the following information will display:
    • When “Class Price Option” is selected:
      • Class III Weighting Factor:
        • A weighting factor (percent) must be entered.
        • This weighting factor will adjust the Class IV Weighting Factor.
      • Expected Price $/cwt: This field displays the expected price from Sales Date selected under the Coverage Info section.
      • Calculated Price: The result of Expected Price $/cwt times the Weighting Factor percent.
      • Daily Price Date: The Sales Date selected under the Coverage Info section.
      • Class Price $: The sum of Calculated Prices from both Class III and Class IV.
    • When the “Component Pricing Option” is selected:
      • Butterfat Declared Test (LBS):
        • Select the Butterfat Test in pounds (lbs.).
      • Protein Declared Test (LBS):
        • Select the Protein Test in pounds (lbs.)
        • The Protein Test drop-down selections will adjust depending on what is selected for the Butterfat Test.
      • Other Solids: This is a fixed amount of 5.7 lbs.
      • Expected Price $/cwt: This field displays the expected price from Sales Date selected under the Coverage Info section.
      • Calculated Price: The result of Expected Price $/cwt times the Declared Test.
      • Daily Price Date: The Sales Date selected under the Coverage Info section.
      • Component Price $: The sum of Calculated Prices from all three of the Declared Tests.
  • Save your data.
    • When all the information in the DRP Attributes screen is complete, click “Save”.
  • On the Full Farm screen, you will now see your first DRP Endorsement line.
    • Trigger Price Column: This column is the result of the Calculated Price times the Endorsement Coverage Level.

DRP_ReportAdd more Quarterly Endorsements

  • To add additional Quarterly Endorsements, select the “Add” icon at the top of the screen or select “Duplicate”.
  • Follow the steps listed above to key in another Quarterly Endorsement quote line.

Reporting

  • In the menu bar select “Reports”, then select “DRP Full Farm”.
  • On the Report Options Editor, select your Coverage Level preference.
    • The Full Farm Quote will display your endorsement information on the left side of the screen.
    • The Full Farm Quote will also show the Trigger Price, Guarantee, Coverage, and Premium per CWT and total.
    • Milk Production Totals, Total Liability, Gross Premium, Total Subsidy, and Producer Paid Premium will display under the Quote Totals section.

Dairy Revenue Protection (DRP) Product Comparison Review

You also have the ability to do a product comparison between pricing options, quarter endorsements, and coverage levels. This way you can find your best coverage prior to sales.

DRP-Review

To access the DRP Review:

  1. Enter into 2019 EASYquote.
  2. Select the "DRP" or "Open" folder to open an existing DRP policy.
  3. Once your Quote Line Attributes screen is populated, click "Save".
  4. At the top of the screen, the third icon will display "DRP Review". Select this icon.
  5. You will now see a grid of all the pricing, liability, and premiums based off of your original quote.
  6. To alter the grid display or values, utilize the Settings on the right hand side of the screen.
  7. To print this page, select "Reports" and then "DRP Interval Review".

Have additional questions? Check out our NAU Country YouTube channel where we videos on to both create a quote and how to utilize our DRP Comparison View.

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