USDA Expands Forage Insurance Options with Revenue Protection Program

The US Department of Agriculture (USDA) has expanded forage insurance options for hay producers in selected states. The new Revenue Protection program will connect hay values to futures relationships involving corn, soybean meal, and Class III milk.

According to Matthew Diersen, a South Dakota State University economist, this change could improve protection when both forage yields and replacement-feed costs move against producers. The program will be available in selected counties across 12 states, including major dairy and livestock regions.

Revenue Protection can provide hay and livestock producers with better financial protection when forage losses coincide with high replacement feed costs. This change could result in larger indemnities when yields fall, and replacement feed is expensive.