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

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