Annual Forage
Protect your livestock feed and fodder crops from the effects of declining precipitation.
Annual Forage (AF) insurance is a single peril policy that helps manage risk associated with lack of precipitation. Select from several insurance periods across four different growing seasons to customize a plan that fits your operation.
Annual Forage sales close 07/15.
Key Features of Annual Forage Insurance Include:
- Flexible coverage options across four different growing seasons
- Covers crops grown for the purpose of livestock feed and fodder
- Insures crops and grasses not covered by Catastrophic Risk policies
- Available in 8 states
- No upfront premiums
- Offsets out of pocket costs caused by forage loss
What is Annual Forage Insurance?
Annual forage is insurance that protects crops used for livestock feed or fodder against a decrease in precipitation, as measured by the rainfall index. This includes crops grown for grazing, hay, green chop, grain, silage, or any combination. Annual Forage is an area-based policy that uses the USDA grid system. Each grid is approximately 12 by 17 miles and uses weather data from NOAA’s Climate Prediction Center to determine rainfall indexes for coverage. If the rainfall index falls below the policy coverage level during a 2-month timeframe, an indemnity payment is triggered. This payment helps offset increased costs caused by the loss of forage due to inadequate rainfall.
Coverage
Starting in 2024, the Annual Forage program is expanding from 1 growing season to 12 to allow for even more flexibility in coverage. Select two intervals within your chosen growing season that are important to your operation and choose a coverage level between 70% and 90%. Each county has a base value that represents its annual forage production value. A percentage of this value is insured by choosing a productivity factor between 60% and 150%. At the end of the growing season, the rainfall index is used to measure current precipitation relative to a historical average. If precipitation, as measured by the rainfall index, falls below the policy coverage level then an indemnity payment will be made.
Eligibility
Available States
Annual Forage is available in eight states: Colorado, Kansas, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, and Texas. A wide range of crops planted for the intended use of grazing, haying, green chop, grain, silage, or any combination are eligible under this policy. Annual Forage does not require loss adjustments, record keeping requirements, or adjuster visits. Only an acreage report is needed at the end of each growing season, making it a hassle-free experience for producers.
The application deadline is July 15th.
Receiving Your Claim
Payments are determined by using NOAA data for the grid(s) and index intervals chosen to insure. At the end of each growing season, the FCIC will issue a final grid index for each insured grid. A Trigger index is reached when the final grid index is less than the expected grid index multiplied by the selected coverage level. You will receive an indemnity payment only when the final grid index is less than the trigger grid index.
Indemnity payments are not based off product losses, individual experiences, or a single weather station.
