Risk Management Agency
Program Announcement
MAKING HAY IN SOUTH DAKOTA
Contact: Douglas Hagel, (406) 657-6447
Douglas.Hagel@rma.usda.gov
BILLINGS, MT, Aug 15, 2000 - The Risk Management
Agency (RMA) reminds farmers that multi-peril
crop insurance coverage is now offered for nonirrigated forage
production in all South Dakota counties (see 2001
crop policy). In 2000, availability was limited to just 4
counties.
Beginning with the 2001 crop year, producers in South Dakota
will be able to insure irrigated and nonirrigated alfalfa and
alfalfa/grass mixtures as well as nonirrigated grass/alfalfa mixtures
(stands of hay that are at least 2 years old and have at least
0.2 alfalfa plants per square foot). There is no age of stand
restriction on the grass/alfalfa type. In the past, stands of
hay with less than 25% alfalfa and overage stands of alfalfa and
alfalfa/grass mixtures were not insurable. For 2001, nearly all
forage stands will be insurable.
"These policy changes combined with higher government
subsidies will help give farmers the coverage they need at a price
they can afford," said Doug Hagel, Director of RMA's Billings Regional Office.
"For many, these changes will make it worth the effort to
take another look at insurance protection."
The availability of crop insurance on crops and practices not
previously insured in a county will help growers better manage
the risk on their farming operations. With these new types of
protection added to the insurance program for hay, there will
no longer be Noninsured
Assistance Program (NAP) benefits available through the Farm Service Agency on these
types of forage production.
Other major changes to forage production coverage for 2001
are the inclusion of winter coverage (no longer a separate endorsement),
the availability of optional units, separate price elections by
type ($63/ton for alfalfa and alfalfa/grass mixtures; $46/ton
for grass/alfalfa mixtures), and increased premium subsidies at
higher levels of coverage.
For more information, producers should contact a crop insurance
agent before the September 30 sales closing date. A listing of
crop insurance agents may be found at a local
Farm Service Agency office.
Related table: South Dakota Forage Production Policies
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