Non-Irrigated Forage Can Be Insured

August 17, 2000

USDA’s Risk Management Agency (RMA) has made multi-peril crop insurance coverage available for non-irrigated forage production in all South Dakota counties for 2001. In 2000, availability was limited to just four counties.

Beginning with the 2001 crop year, producers in South Dakota will be able to insure irrigated and non-irrigated alfalfa and alfalfa/grass mixtures as well as non-irrigated grass/alfalfa mixtures (stands of hay that are at least two years old and have at least 0.2 alfalfa plants per square foot). There is no age of stand restriction on the grass/alfalfa type. In the past, stands of hay with less than 25% alfalfa and overage stands of alfalfa and alfalfa/grass mixtures were not insurable. For 2001, nearly all forage stands will be insurable.

"These policy changes combined with higher government subsidies will help give farmers the coverage they need at a price they can afford," said Doug Hagel, director of RMA's Billings, MT, regional office. "For many, these changes will make it worth the effort to take another look at insurance protection."

With these new types of protection added to the insurance program for hay, there will no longer be Noninsured Assistance Program (NAP) benefits available through the Farm Service Agency on these types of forage production.

Other major changes to forage production coverage for 2001 are the inclusion of winter coverage (no longer a separate endorsement), the availability of optional units, separate price elections by type ($63/ton for alfalfa and alfalfa/grass mixtures; $46/ton for grass/alfalfa mixtures), and increased premium subsidies at higher levels of coverage.

For more information, producers should contact a crop insurance agent before the Sept. 30 sales closing date. A listing of crop insurance agents may be found at a local Farm Service Agency office.