BUSINESS OF FARMING
USING INSURANCE TO MANAGE RISK IN HAY AND FORAGE PRODUCTION A STEADILY INCREASING TREND IN ALABAMA BY A DA M N . R A B I N O W I T Z , P H . D . One of the biggest uncertainties that hay and forage producers face is weather and the ability to receive adequate moisture for the growth and maturity of pasture and forages. Of course, weather is completely out of human control, making it a very uncertain factor of production. There are options to help manage the risk that is associated with that uncertainty and to minimize the financial impact on agricultural production. 12
Cooperative Farming News
The United States Department of Agriculture (USDA) Risk Management Agency (RMA) administers an insurance program targeted toward producers of perennial forage for grazing and hay. The Rainfall Index (RI) Pasture, Rangeland and Forage (PRF) insurance program provides a heavily subsidized insurance product that has been available in Alabama since 2009. When rainfall is low, relative to historical averages, this insurance product will
