LUBBOCK, TX – USDA is expanding forage insurance for 2027, giving hay producers in selected states access to Revenue Protection for the first time. South Dakota State University economist Matthew Diersen says the change could improve protection when both forage yields and replacement-feed costs move against producers.
The new option will be available in selected counties across 12 states, including major dairy and livestock regions. Revenue Protection will connect hay values to futures relationships involving corn, soybean meal and Class III milk.
For livestock producers raising hay for their own use, the change could mean larger indemnities when yields fall, and replacement feed is expensive. Commercial hay growers could also receive better revenue protection when forward sales are already committed.
The program remains relatively small. USDA estimated 50 million hay acres for 2026, while Forage Production insurance covered only about 1.4 million acres nationwide.
Producers outside eligible counties can still consider Pasture, Rangeland and Forage coverage or Noninsured Crop Disaster Assistance Program protection as alternatives.
Farm-Level Takeaway: Revenue protection could provide hay and livestock producers with better financial protection when forage losses coincide with high replacement feed costs.