Production Insurance for new forage seeding offers establishment protection for new forage crops. A claim may be paid if an insured peril causes damage to three or more adjoining acres, preventing your crop from establishing a stand.
Production Insurance covers you for losses due to
adverse weather, disease, pests, wildlife, or other uncontrollable natural
perils, except for perils excluded in your Contract of Insurance – General Terms and the Commodity-Specific Terms: New Forage
Seeding on the Publications page.
Calculating your coverage and claims
There are two different plans for new forage seeding. If you grow both the premium and standard new forage seeding, you must insure the premium new forage seeding in order to insure the standard.
Premium new forage seeding plan
This plan is designed to ensure the establishment of high-quality, long-term forage stands. They contain a seed count of less than 50% red clover or have a seed value of at least $35 per acre.
Claim payments are subject to a deductible of 10% of the total planted acres.
Standard new forage seeding plan
This plan is intended for forage stands that contain a seed count of more than 50% red clover or have a seed value of less than $35 per acre.
Claim payments are subject to a deductible of 35% of the total planted acres.
How claims are determined
A claim under establishment coverage may be paid if:
- At least three adjoining acres were damaged
- Damage was due to an insured peril
- Damage was reported to Agricorp
claim price is set for each plan at the beginning of the year. Claims are calculated using this formula:
Number of acres – deductible* × claim price ($/acre)
* Deductible equals:
- 10% of total acres for premium new seeding
- 35% of total acres for standard new seeding
Example: Calculating an establishment claim
Wallace Farms planted 150 acres of spring-seeded, standard new forage seeding. Due to conditions after planting, 100 acres failed to establish a decent stand. The deductible for standard new forage seeding is 35% of total liability (150 × 35% = 52.5 acres) and the example establishment claim price is $115 per acre. Based on this information, the establishment claim is calculated as follows:
Claim payment = 100 acres – 52.5 acres × $115.00