In this article, we provide a historical examination of forage risk management programs available in Wisconsin from 2015 to 2024. Dairy and livestock producers rely heavily on forage production, which is the primary source of nutrition and is essential for maintaining animal health and productivity.  However, the quality and availability of forage is highly dependent on receiving sufficient and timely rainfall. Weather conditions, including drought, excessive heat and unseasonal dry spells, can significantly reduce forage yields, leading to feed shortages and increased production costs.

 To help producers manage the risks associated with forage production, several insurance and support programs are available to Wisconsin producers. These include the Forage Seeding Program, which provides coverage for newly established forage crops against losses due to adverse weather conditions and damage from wildlife, insects and plant disease; the Forage Production Program, designed to protect against yield losses in established forage stands; and the Pasture, Rangeland, and Forage (PRF) Insurance Program, administered by the USDA’s Risk Management Agency (RMA). The PRF program helps mitigate risks associated with insufficient rainfall by providing coverage based on a rainfall index, offering producers a safety net when precipitation falls below historical averages.

Over the 2015–2024 period, forage insurance programs show varied performance in Wisconsin. Forage Production and Forage Seeding insurance generally provided higher indemnities than premiums paid, except in 2016 and 2024. In contrast, PRF insurance often showed lower program loss ratios, with indemnities frequently falling short of premiums. Indemnities per insured acre varied widely across programs, highlighting differences in payout patterns. Given the substantial subsidies—ranging from 51% to 59% for PRF and 38% to 67% for Forage Production and Seeding—participation in these programs should be a carefully considered, strategic decision. Wisconsin producers have generally benefited from these policies, which tend to pay more in indemnities relative to premiums over time.

PRF triggers payout to producers when precipitation in a producer’s grid is lower than the insured coverage level. With premium subsidies ranging from 51 to 59 percent, producers can insure 70 percent to 90 percent of their grid.  Both Forage Production and Seeding have premium subsidies ranging from 38 percent to 67 percent, and they triggered payouts to producers when covered losses occur.

From 2015 to 2024, Wisconsin producers paid $61 million in Forage Production premiums and received $53 million in indemnities.  Indemnities relative to program premiums range from 0.2 in 2024 to 2.76 in 2019; however, producer loss ratio ranges from 0.54 in 2024 to 7.34.  Except in 2016 and 2024, producers tend to receive more in indemnities payments than premiums incurred. Indemnities ranges from $7 in 2016 to $57 per insured acre in 2023.  In the same period, Wisconsin producers paid over $19 million in Forage Seeding premiums and received $30 million in indemnities. Indemnities tend to be greater than producer (program) premiums, except in 2024 when the ratio is 0.69 (0.31). Indemnities per insured acre ranges from $9 in 2024 to $101 in 2018. From 2015 to 2024, Wisconsin producers who enrolled in PRF paid more than $18 million in premiums, while receiving approximately $10 million in indemnities. Program loss ratios tend to be lower than 1, ranging from 0.08 in 2019 to 1.05 in 2023. Due to premium subsidies, the probability of producer loss being equal or greater than 1 is the same as it being below 1. Indemnities relative to producer premium is lowest in 2016 with 0.19 and highest in 2023 with 2.27. Per acre indemnities for producers who enrolled in PRF ranges from $3 in 2016 to $37 in 2023.

Table 1: Forage Production, 2015-2024

Year	Insured Acres	Policies Sold	Total Premium	Subsidy	Indemnity	Producer Loss Ratio	Program Loss Ratio	Indemnity per acre
2015	329934	3039	8611586	5353050	7031176	2.16	0.82	21.31
2016	273134	2381	6777070	4204885	1849419	0.72	0.27	6.77
2017	220885	1920	3817072	2354626	5326533	3.64	1.4	24.11
2018	194409	1684	3493762	2136330	4770705	3.51	1.37	24.54
2019	162008	1468	3203622	1997630	8846511	7.34	2.76	54.61
2020	151766	1370	4283939	2614286	7031068	4.21	1.64	46.33
2021	188256	1340	6429633	3891042	3273395	1.29	0.51	17.39
2022	187929	1367	8545408	5184763	3911103	1.16	0.46	20.81
2023	166025	1287	8625909	5243632	9533870	2.82	1.11	57.42
2024	151291	1156	7216201	4523248	1440881	0.54	0.2	9.52

Table 2: Forage Seeding, 2015-2024

Year	Insured Acres	Policies Sold	Total Premium ($)	Subsidy  ($)	Indemnity ($)	Producer Loss Ratio	Program Loss Ratio	Indemnity per acre
2015	95858	2990	2315302	1333029	2385746	2.43	1.03	24.89
2016	68190	2939	1622340	940330	3627413	5.32	2.24	53.20
2017	70015	2848	1574305	913272	2000938	3.03	1.27	28.58
2018	72905	2798	1696914	974765	7384586	10.23	4.35	101.29
2019	74115	2865	1621168	916514	4024793	5.71	2.48	54.30
2020	129307	3044	3110898	1757349	4257939	3.15	1.37	32.93
2021	84105	3153	2021408	1130454	2452191	2.75	1.21	29.16
2022	53997	3067	1313798	735140	1439729	2.49	1.1	26.66
2023	74654	2978	2128618	1189489	2226318	2.37	1.05	29.82
2024	68137	3054	2011768	1112676	623375	0.69	0.31	9.15

Table 3: PRF, 2015-2024

Year	Insured Acres	Policies Sold	Total Premium ($)	Subsidy ($)	Indemnity ($)	Producer Loss Ratio	Program Loss Ratio	Indemnity per acre
2015	52416	427	2058346	1102773	843856	0.88	0.41	16.10
2016	60242	476	2149767	1162517	188403	0.19	0.09	3.13
2017	54946	431	1628921	879492	662532	0.88	0.41	12.06
2018	50071	403	1628250	873311	663552	0.88	0.41	13.25
2019	49434	379	1772578	949486	136976	0.17	0.08	2.77
2020	42869	328	1486183	796280	691509	1	0.47	16.13
2021	49929	344	1718390	923065	1509346	1.9	0.88	30.23
2022	49313	362	1742149	935172	1460396	1.81	0.84	29.61
2023	54608	408	1928303	1035506	2022615	2.27	1.05	37.04
2024	65637	462	2220244	1196264	1729360	1.69	0.78	26.35

In Figures 1-3, we present aggregate producer loss ratio from 2015-2024 across Wisconsin counties. For all three programs, the aggregate producer loss ratio exceeded one, indicating indemnities received surpassed the premiums paid in most counties.  

Figure 1: Forage Production Producer Loss Ratio, 2015-2024

Figure 2: Forage Seeding Producer Loss Ratio, 2015-2024

Figure 3: PRF Producer Loss Ratio, 2015-2024

Producers tend to receive more indemnities for every $1 of premium incurred; however, participation in these programs remain low in Wisconsin.  In 2024, Wisconsin producers enrolled 151000, 68000 and 66000 respectively in Forage Production, Forage Seeding and PRF.

Figure 4: Participation in Forage Risk Management, 1989-2024

Despite low participation in forage risk management, enrollments in these forage risk management program vary greatly across counties as shown in Figures 5-7.  Enrollment in forage production tend to concentrate in northeastern counties of Wisconsin in 2024. The participation in forage seeding follows the pattern observed for forage production, but enrollment by a collection of southern and western counties is high. PRF participation in 2024 tend to concentrate in western counties.

Figure 5: Forage Production Insured Acres, 2024

Figure 6: Forage Seeding Insured Acres, 2024

Figure 7: PRF Insured Acres, 2024

Over the 2015–2024 period, forage insurance programs show varied performance in Wisconsin. Forage Production and Forage Seeding insurance generally provided higher indemnities than premiums paid, except in 2016 and 2024. In contrast, PRF insurance often showed lower program loss ratios, with indemnities frequently falling short of premiums. Indemnities per insured acre varied widely across programs, highlighting differences in payout patterns. Given the substantial subsidies—ranging from 51% to 59% for PRF and 38% to 67% for Forage Production and Seeding—participation in these programs should be a carefully considered, strategic decision. Wisconsin producers have generally benefited from these policies, which tend to pay more in indemnities relative to premiums over time.

References:

USDA, Agricultural Research Service. (2012, March). What is forage? U.S. Dairy Forage Research Center. Retrieved March 4, 2025, from https://www.ars.usda.gov/ARSUserFiles/50901500/EducationalMaterialsMarch2012/Especially%20For%20Teachers/01_what%20is%20forage_v2.pdf

Parsons, J., Hewlett, J., & Tranel, J. (2023, November 10). Pasture, Rangeland, Forage Insurance summary of sales and performance history. Center for Agricultural Profitability, University of Nebraska–Lincoln. https://cap.unl.edu/news/pasture-rangeland-forage-insurance-summary-sales-and-performance-history/

U.S. Department of Agriculture, Agricultural Research Service. (n.d.). U.S. Dairy Forage Research Center. U.S. Department of Agriculture. Retrieved March 4, 2025, from https://www.ars.usda.gov/midwest-area/madison-wi/us-dairy-forage-research-center/