AF provides highly customizable protection from below average rainfall on annually planted acres used as feed and fodder by livestock. Indemnity (payment) is based on the number of acres insured and is triggered when precipitation for a specific area falls below historic average during a specific time period. AF is available in CO, KS, ND, NE, NM, OK, SD, and TX.
Lack of precipitation can be detrimental to grazing and feed production plans.
AF is smart: The USDA subsidizes premium amounts up to 59%, making this an affordable and beneficial tool for many forage growers and grazers.
Indemnity is auto-calculated: Precipitation and historic averages are determined by the National Oceanic and Atmospheric Administration (NOAA), which means data, not an adjuster, determines indemnity.
Number and Location of Acres: Insure up to every acre of annual forage you own or lease.
Growing Season(s) and Intervals: Acreage is insured in one of 12 possible growing seasons based on plant dates. Each growing season is composed of several intervals, which are two months long.
Coverage Level: Insure 70–90% of historic average precipitation. Precipitation must fall below your coverage level for a grid/interval to trigger indemnity.
Productivity Factor: You can value your acres at 60–150% of the average value* in the county. The amount of indemnity you receive is based on the productivity factor you select.
*Average value, called the county base value, is set by the USDA
Dual Use Option: Allows producers the option to purchase both AF and a small grains (traditional MPCI row crop insurance) policy on a crop that is planted with the intent to graze first and then later harvest for grain.