USDA Adds Revenue Insurance to Hay Production

The USDA's Risk Management Agency has announced changes to hay insurance for many states. The affected product, Forage Production, will now include Revenue Protection (RP) for selected counties in several states. This change adds revenue insurance to forage production in these areas.

According to the June Acreage report, there were an estimated 50.0 million acres of hay expected to be harvested nationwide in 2026. Of those, only 1.4 million acres were insured under Forage Production. Beginning with coverage for 2027, RP will be available for selected counties in California, Idaho, Iowa, Michigan, Minnesota, Montana, Nebraska, North Dakota, Pennsylvania, South Dakota, Washington, and Wisconsin.

The revenue feature of RP ties the projected and harvested price for hay to a combination of futures prices for corn, soybean meal, and Class III milk. This means that if the underlying crop price increases before harvest, the indemnity payment can also increase. For producers raising hay for on-farm use, having RP would generally mean a higher indemnity payment when there are yield losses.