NEW CROP INSURANCE PROGRAM FOR HAYING & GRAZING LAND
MONTGOMERY, Ala. -- In response to the drought conditions that plagued the State of Alabama this past summer, the USDA Risk Management Agency (RMA) has recently expanded a pilot insurance program to cover hay and grazing land in the state for the 2008 crop year.
This program, called the "Pasture, Rangeland and Forage -- Rainfall Index Plan of Insurance," is a simple "group risk" type of program. The insurance policy covers deviation from normal rainfall over a 12-square-mile area, using data supplied by the National Oceanographic and Atmospheric Association (NOAA).
Farmers have a choice of six two-month intervals to insure at pasture and hay values established by RMA. These products were designed to allow maximum flexibility for the producer. Producers are not required to insure all acres, but cannot exceed the total number of grazing or haying acres they operate. This allows a producer to insure only those acres that are important to his or her grazing program or hay operation.
By selecting a Productivity Factor, a producer can establish a value between 60 and 150 percent of the County Base Value and match the amount of protection to the value of forage that best represents the specific grazing or hay operation, as well as the productive capacity of the land.
The insurance policy must be purchased by Nov. 30, 2007 for the 2008 crop year.
Several meetings on this program have been scheduled in October and November.
Listed are a few that are already finalized:Oct. 15 -- Moulton StockyardOct. 29 -- Columbiana, Auburn Extension officeOct. 30 -- Winfield, Upper Coastal Experiment StationNov. 8 -- Camden, Lower Coastal Experiment StationNov. 12 -- Montgomery, Alabama Cattleman's AssociationNov. 13 -- Mobile, Location TBANov. 15 -- Headland, Experiment Station
Any changes to the schedule will be posted on the Alabama Department of Agriculture & Industries Web site, www.agi.alabama.gov.
For more information on this new program or the meetings, contact Mike Shewbart with Department of Agriculture & Industries at (256) 246-1543.
For additional information on this new program, farmers may also contact their local crop insurance agent or visit the RMA Web site at: www.rma.usda.gov
A list of local crop insurance agents is available at County FSA Offices or on the RMA Web site.