Price Options

The Variable and In-Season Price Options can help manage price fluctuations that occur throughout and after the growing season.

Variable Price Option

The Variable Price Option is available for producers who want an insured price that better reflects the value of the current year’s hay crop. A market survey is completed in September to determine the final insured price.

Under this option, there is no cap on the maximum value for the forage insurance price. If the market price for hay rises over the course of the year, producers selecting this option will see the full price increase for their forage claim. The final price for a crop can decrease by a maximum of 50 per cent in relation to the base price for the crop if the final price decreases.

The premium is based on the historical relationship between the base price forecasts in the spring and the actual market prices in the fall. The premium costs are known in March regardless of the direction the prices will move in the fall. Premiums will be higher to mitigate the risk of price uncertainty. The dollar guarantee will still change based on the fall market survey.

In-Season Price Option

The In-Season Price Option is similar in concept to the Variable Price Option; however, the final price considers a wider time frame. The In-Season Price Option provides a six-month (September to February) average of current market conditions, yet sets premium values up front, giving premium certainty to producers.

Under this option, there is no cap on the maximum value for the forage insurance price. If the market price for hay rises over the course of the year, producers selecting this option will see the full price increase for their forage claim. The final price for a crop can decrease by a maximum of 50 per cent in relation to the base price for the crop if the final price decreases.

An interim payment will be made when the claim is processed. Final payment will be issued after prices are finalized in February following the year of selection.