When the USDA initially introduced the Annual Forage pilot program back in 2013, the risk management plan was presented as a chance for farmers and ranchers to take precautions to protect themselves, both then and in the future. Seven years later, the Annual Forage program remains one of the best coverages a farmer or rancher can enroll in for a number of beneficial reasons.
Last year, farmers and ranchers nationally endured hardships due to lack of precipitation, higher feed costs, and dried up rivers forcing some producers to truck-in water to protect their livestock. While farmers and ranchers alike know all about “risk”, how those harmful situations are managed on a daily basis or by planning ahead is often a different story when faced with the unpredictability of harsh weather, grazing management, hay and feed storage issues, sell their cattle or even worse — having to sell their ranch.
Thankfully, programs like Annual Forage are made available to alleviate such year-round worries and concerns. Here are four reasons why farmers and ranchers should enroll in the Annual Forage program.
- Planting Annual Forage
For livestock producers, Annual Forage crops are considered supplemental or emergency crops and play a big part within the forage system. While a high-quality perennial forage can serve as the base for livestock producers, using forage like hay, silage, or grazing has proven to be a positive alternative. - Peace Of Mind
Federally reinsured, the Annual Forage program is designed to meet the daily needs and high demands of producers planting annual forage crops to use for livestock feed or fodder and provides some much-needed peace of mind in the process. Since 2014, the Annual Forage program has been offered in North Dakota, South Dakota, Nebraska, Kansas, Oklahoma, Texas and expanded into Colorado and New Mexico as a way to further protect producers from a lack of precipitation in a respective area. That protection alone has provided some much-needed relief in those States where the Annual Forage program is available. - What Crops Are Covered?
This one is pretty cut-and-dry when it comes to determining which crops are included in the Annual Forage program. Annually planted crops used for grazing, haying, grazing/haying, grain/grazing, green chop, grazing/green chop, or silage can be protected. - No Rain, Your Gain
If a producer purchases coverage for Annual Forage they may receive an indemnity payment based off of the lack of precipitation in their area. The coverage level is selected by the producer who may select between 70% – 90% of normal precipitation. Obviously, the higher-coverage level the more likely the Annual Forage program (designed to insure both irrigated and non-irrigated acres) will pay an indemnity payment.
Regardless which cause leads you to enroll, it’s clear that there’s no reason to wait to sign-up for the Annual Forage program.
Over the years of getting to work closely with farmers and ranchers and better understand their hardships, we’re proud to partner together to help provide coverage, protection, and some reassurance that everything is going to be alright. We look forward to answering any questions and sharing more information about how you can benefit by getting involved in the Annual Forage program with Allied Securities Insurance.