Annual Forage Insurance
Get financial coverage for insufficient forage crops in times of below-average rainfall
Insufficient rainfall can devastate your annual crops, leaving your livestock without essential feed and you taking on additional expenses. Because of this, each dry spell threatens not just your harvest but the very stability of your operation. The costs of supplemental feed soar, and the stress mounts with every cloudless day.
Secure your crops against the unpredictability of rainfall. Get a custom quote for an Annual Forage Insurance plan tailored to your operation’s needs from Allied Ranchers Insurance.
How Annual Forage Insurance Protects You From Insufficient Rainfall
Annual Forage Insurance is a federally reinsured program designed to safeguard producers against losses due to inadequate rainfall. Utilizing the Rainfall Index developed by NOAA’s Climate Prediction Center, the program compares actual precipitation levels to historical averages within specific geographic grids across the United States. If rainfall falls below your selected coverage level during chosen intervals, the policy triggers an indemnity payment to help offset the reduced annual forage production.
Key Benefits of Annual Forage Insurance
When forage production drops due to a lack of rain, the financial strain can hit fast. Annual Forage Insurance gives you peace of mind by stepping in when nature doesn’t cooperate, helping you manage rising feed costs, maintain herd health, and avoid long-term setbacks to your operation.
Rainfall-Based Protection
The policy utilizes NOAA’s Rainfall Index to compare actual precipitation against historical averages within your specific grid area. If rainfall falls below your selected coverage level during chosen intervals, the policy triggers an indemnity payment to help offset the loss of forage production and the expenses from purchasing additional livestock feed.
Customizable Coverage
You can select coverage levels between 70% and 90% and productivity factors ranging from 60% to 150% and pick up to three two-month index intervals for the coverage period that align with your annual crop growth periods.
Affordable Premiums
The federal government subsidizes a portion of the premium, making this risk management tool more accessible and cost-effective for producers.
Timely Indemnity Payments
After your selected two-month interval concludes, the USDA’s Risk Management Agency releases the final Rainfall Index value. If an indemnity is triggered, payments are typically issued promptly, providing timely financial support to help manage cash flow and make informed decisions about purchasing supplemental feed or adjusting grazing plans.
By integrating this insurance policy into your risk management strategy, you can enhance the resilience of your operation, ensuring consistent feed availability and financial stability even during challenging weather conditions.
Who Qualifies for Annual Forage Insurance
This policy is designed to support producers who plant annual forage crops for livestock feed or fodder. To be eligible for this program, the following criteria must be met:
Eligible Producers
- Residency: Producers operating in the following states are eligible: Colorado, Kansas, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, and Texas
- Land Use: Those who plant annual crops for grazing, haying, green chop, silage, or a combination thereof.
- Land Tenure: Both landowners and tenants (with appropriate lease agreements) who have a share in the crop are eligible.
Eligible Crops
The program covers a variety of annually planted crops, including but not limited to:
- Wheat
- Barley
- Oats
- Millet
- Triticale
- Hay grazer
- Corn for silage
- Other annual crops planted specifically for livestock feed purposes
Enrollment Deadlines
- Sales Closing Date: To participate, producers must sign up by July 15 for coverage in the upcoming crop year.
- Acreage Reporting: After planting, producers are required to submit an acreage report by the specified reporting date for their county or grid.
Additional Considerations
- Coverage Flexibility: Producers are not required to insure all their annual forage acres. They can choose specific acres as their insured field and intervals that align with their planting period and risk management strategies.
- Dual Use Option: In certain counties, producers can opt for the Dual Use Option, allowing them to insure the same acreage under both an Annual Forage policy for grazing and a Small Grains policy for grain production.
Secure Your Forage Crops with Allied Ranchers Insurance
Protect your crops for livestock feed against unpredictable weather with Annual Forage Insurance from Allied Ranchers Insurance. Our tailored coverage helps ensure the sustainability of your agricultural operations.
Get started today by contacting one of our crop insurance agents for a custom quote.
