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.

Protection and Coverage Levels

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

Annual Forage is available in 8 states:
• Colorado
• Kansas
• Nebraska
• New Mexico
• North Dakota
• Oklahoma
• South Dakota
• 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.

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.