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The Rainfall Index Annual Forage Pilot Program as a Risk Management Tool for Cool Season Forage

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  • Maples, Joshua G.
  • Brorsen, B. Wade

Abstract

The recently implemented Rainfall Index Annual Forage pilot program aims to provide risk coverage for annual forage producers in select states through the use of area rainfall indices as a proxy for yield. This paper utilizes unique data from a long-term study of annual ryegrass production with rainfall recorded at the site to determine whether or not the use of rainfall indices provides adequate coverage for annual forage growers. The rainfall index is highly correlated with actual rainfall. However, it does not provide much yield loss risk protection for our specific data.

Suggested Citation

  • Maples, Joshua G. & Brorsen, B. Wade, 2015. "The Rainfall Index Annual Forage Pilot Program as a Risk Management Tool for Cool Season Forage," 2015 Conference, April 20-21, 2015, St. Louis, Missouri 285842, NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    • Handle: RePEc:ags:n13415:285842
    DOI: 10.22004/ag.econ.285842
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    1. Gunnar Breustedt & Raushan Bokusheva & Olaf Heidelbach, 2008. "Evaluating the Potential of Index Insurance Schemes to Reduce Crop Yield Risk in an Arid Region," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(2), pages 312-328, June.
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    2. James B. Keller & Tina L. Saitone, 2022. "Basis risk in the pasture, rangeland, and forage insurance program: Evidence from California," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1203-1223, August.
    3. Yu, Jisang & Vandeveer, Monte & Volesky, Jerry, "undated". "Basis Risk and Effectiveness of Rainfall Index Insurance for Pasture, Rangeland and Forage," SCC-76 Meeting, 2017, March 30-April 1, Pensacola, Florida 256327, SCC-76: Economics and Management of Risk in Agriculture and Natural Resources.
    4. Ashlee Westerhold & Cory Walters & Kathleen Brooks & Monte Vandeveer & Jerry Volesky & Walter Schacht, 2018. "Risk implications from the selection of rainfall index insurance intervals," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 78(5), pages 514-531, May.
    5. Belasco, Eric J., 2020. "WAEA Presidential Address: Moving Agricultural Policy Forward: Or, There and Back Again," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 45(3), September.
    6. Cho, Whoi & Diersen, Matthew, 2025. "Effective Use of Pasture, Rangeland, and Forage – Rainfall Index (PRF-RI) Crop Insurance," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 361152, Agricultural and Applied Economics Association.
    7. Keeler, James B. & Saitone, Tina L., 2020. "Basis Risk Associated with the Pasture, Rangeland, and Forage Insurance Program: Evidence from California," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304322, Agricultural and Applied Economics Association.
    8. Vroege, Willemijn & Dalhaus, Tobias & Finger, Robert, 2019. "Index insurances for grasslands – A review for Europe and North-America," Agricultural Systems, Elsevier, vol. 168(C), pages 101-111.
    9. Collins, Wilson, 2022. "Potential changes to improve the pasture, rangeland, and forage insurance program," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322574, Agricultural and Applied Economics Association.

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