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Annual Forage
overview
The Annual Forage insurance program is a federal crop insurance pilot program that provides insurance protection for Annual Forage produced for grazing or haying in Colorado, Kansas, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, and Texas depending on the Reinsurance Year. Consult the actuarial documents for details.
Due to the difficulties in measuring price and yield for forage crops, the program is based on the average rainfall in a selected area (Grid) for a period of time (Index Interval). If the rainfall is less than expected, the insured is entitled to an indemnity payment.
The System’s validations are included in these topics to avoid future Mark Complete issues. To avoid future coverage complications, adhere to these steps.
IMPORTANT TERMINOLOGY
Grid
To measure the amount of rainfall in a given area, the insurance program uses grids identified by the National Oceanic and Atmospheric Administration (NOAA). The rainfall found in these grids is measured by a weather station, and from those measurements, a grid-level yield estimate is established.
Index Interval
This is the two-month period of time, indicated by the grower, when rain is most important to his operation. This, used in conjunction with the selected grid, determines when indemnity is paid. If, during the selected Index Interval, a grid receives less rain, a grower is due an indemnity payment. As such, it’s critical that the Index Interval chosen reflects the typical expectations of the grid where the coverage is located. Only one Index Interval is allowed per coverage.
NOTE: Coverage allows for a March-September or September-March Index Interval.
Growing Season
Many of the restrictions in place for Annual Forage revolve around the use of a single Growing Season when indicating the Practice, Percent of Value, Coverage Level, and Productivity Factor for a coverage. The Index Interval selected for a coverage determines the Growing Season.