Annual Forage Insurance Enrollment Deadline Approaches
Agriculture producers are reminded that the July 15 deadline to sign up for Annual Forage Insurance is quickly approaching. This program offered by Capital Farm Credit’s Insurance Services is designed to protect annually planted acres used as livestock feed or fodder, with an intended use of grazing or hay, from below average rainfall.
Annual Forage Insurance allows producers to insure their forage crops by dividing their liability into two-month index intervals. This strategy targets critical periods of precipitation during the growing season. The program utilizes rainfall index data to correlate precipitation levels to the insured acreage.
“Annual Forage Insurance ultimately serves as a safety net for farmers when it doesn’t rain,” said Jarad Flores, relationship agent. “For example, a young farmer had a lot of carry over debt from last year, and his annual forage insurance indemnity eliminated all of that debt and helped him get ahead on equipment payments.”
Indemnities are paid when rainfall during a specific two-month period in a designated area falls below a selected percentage of historical average rainfall. It is important to note that payments are based on final conditions in the entire grid area and not on a specific property within the grid.
“Other farmers have been able to expand and continue their operations due to the protection that Annual Forage Insurance provided to their operation when it didn’t rain. It all counts.”
To enhance the experience for our members, Capital Farm Credit provides a personalized map that is emailed or mailed after each interval, in addition to a mobile app that allows users to view current rainfall data in their grid from their phones.
“At Capital Farm Credit, we have the technology and experience needed to help meet the needs of every operation through an individualized approach tailored to each producer,” said Flores.
Members are encouraged to act quickly to secure their coverage and protect their investments before the July 15 deadline.
Need to speak to an agent? Contact a member of our team here: Texas Annual Forage Crop Insurance | Capital Farm Credit.