Purpose

• Select Hay Insurance provides maximum insurance coverage for producers who experience a forage production shortfall or quality loss due to designated perils.

Eligibility

• Select Hay Insurance is available to Manitoba hay producers.
• This program provides insurance for a production shortfall or quality losses for alfalfa, alfalfa grass mixtures, tame grasses, sweet clover, and coarse hay.
• To be eligible for coverage, there must be at least five acres of the hay type grown.
• All hay types must have greater than  per cent ground cover to qualify for insurance.
• MASC adjustors may inspect fields to determine the type of hay and whether it qualifies for insurance.
• For coverage and claim calculations, each hay type is a separate insurable crop with no offsetting between hay types.
• Producers can select coverage levels of or  per cent of probable yield for each individual crop.

• Insurable Crop Types and Relative Feed Values

  Crop Type	Crop Type Definition	Relative Feed Value (RFV)
  Alfalfa	Includes stands of 75 per cent or more alfalfa	RFV 105
  Alfalfa Grass Mixture	Includes stands of between 25 and 75 per cent alfalfa	RFV 95
  Grasses	Includes stands of 75 per cent or more tame grasses	RFV 85
  Sweet Clover	Only includes sweet clover the year after establishment	RFV 95
  Coarse Hay	Stands of native hay and other hay used for livestock feed that consists of less than 75 per cent tame hay. Does not include bulrushes and other species of low feed value.	RFV 75

Cost

• There are separate premium rates for each provincial forage region and each hay type under Select Hay Insurance.
• Forage stands less than or equal to four years of age and those over four years of the same hay type will be charged the same premium per acre, but will have separate Probable Yields.
• Premiums are shared  per cent by the producer,  per cent by the Government of Canada, and  per cent by the Province of Manitoba.

Coverage

• Probable Yield is based on an individual’s -year yield history (Individualized Coverage) and is calculated separately for each crop type, and in the case of alfalfa, alfalfa grass mixtures, and tame grasses, by age of stand (less than or equal to four years old and those over four years old).
• Producers are assigned to the Forage Region in which their farm has the most forage acres.
• Coverage levels of or  per cent of Probable Yield may be selected.
• March 31 is the last day to apply for Select Hay Insurance, make changes to coverage, or to cancel Select Hay Insurance. Select Hay Insurance renews automatically each year unless cancelled by the producer before this date.
• Producers are required to submit a Seeded Acreage Report to MASC by June 30 and a Harvested Production Report by November 30.

Claims

• Producers must register a claim for Select Hay Insurance before October 1, and provide notice at least 10 days prior to feeding, selling, or storing any production in an immeasurable position, or the claim may be denied.
• Losses are determined over the entire acreage for each insured hay type.
• For claim purposes, production and quality losses will be offset between ages of stand, but not between hay types.
• If the yield for a hay type is less than the tonnage coverage for that hay type, then there is a payable claim.
• Select Hay coverage will be reduced by the amount of any previously paid Forage Restoration claim.

• Claim Example

  Hay Type	Acres	Coverage	Harvested Yield	Difference	Claim
  Alfalfa	160	260.50 tonnes	315.75 tonnes	55.25 tonnes	no
  Alfalfa Grass Mix	100	193.00 tonnes	165.50 tonnes	-27.50 tonnes	yes
  Select Hay Claim Amount	= Production Shortfall (tonnes) x Dollar Value of Crop x RFV Adjustment   = 27.50 tonnes (shortfall) x $ per tonne (alfalfa grass mix) x (no adjustment)   = $

  The alfalfa grass mixture harvested yield is less than the tonnes of coverage and there is no adjustment for quality loss. The alfalfa grass mixture dollar value is $ per tonne. The producer would have a claim of $.

Other Program Details

• The Hay Disaster Benefit is included with Select Hay Insurance.
• Producers that have Select Hay are eligible to enroll in the Enhanced Quality Option (EQO), which provides a higher relative Feed Value (RFV) guarantee.
• The Harvest Flood Option (HFO) provides coarse hay coverage if a producer is unable to harvest due to excess moisture.
• The Forage Restoration Benefit provides compensation to restore an insured hay crop that was damaged by excess moisture before October 1. The Forage Restoration Benefit does not apply to coarse hay or sweet clover.
• The last day to submit Forage Restoration, HFO, or EQO claims (without penalty) is October 1.
• Pasture Insurance provides additional insurance coverage to cover potential losses resulting from shortfalls in summer grazing capacity. All hay types must be insured at the same coverage level to qualify.