Agricultural Economics, Department of
Annual Forage Insurance as a Risk Management Tool
Date of this Version
9-24-2025
Document Type
Article
Citation
Sand, S. “Annual Forage Insurance as a Risk Management Tool,” CAP Series 25-0901, Center for Agricultural Profitability, University of Nebraska-Lincoln, Sept. 24, 2025. DOI: 10.32873/unl.dc.cap078.
Abstract
Planting annual forages can be a smart way to supplement feed for livestock whether through grazing, hay, or silage. However, unpredictable rainfall often puts forage production at risk. To help producers manage that uncertainty, the Annual Forage (AF) Insurance Program provides protection tied directly to precipitation during key growth periods.
Annual Forage insurance is designed specifically for crops planted annually and used as livestock feed. It works much like Pasture, Rangeland, and Forage (PRF) insurance, using a rainfall index instead of individual farm yield data. This means indemnity payments are triggered by rainfall amounts measured within a producer’s grid, not by actual harvested production.