Hay Insurance is available for both dryland and irrigated hay and provides a production guarantee based on the average of historical yields and coverage option selected.

When hay production (harvested and appraised) falls below the guarantee, and the loss is due to an insured peril, the shortfall amount will be paid at the selected price option. Hay Insurance does not compensate for quality loss.


Coverage is a fundamental part of any insurance policy. Clients can customize their coverage by selecting an insurance price and a coverage level of 50, 60, 70 or 80 per cent of the long-term average yield. Different coverage levels may be selected for dryland and irrigated hay but both types are required to be elected at the same insurance price.

Additional Insurance Benefits Available

The Moisture Deficiency Endorsement provides coverage based on the current year’s precipitation over a specified period at selected weather station(s), compared to the long-term normal. This endorsement can only be purchased with Hay Insurance. It can be purchased on acres of dryland (alfalfa, legume and grass) hay.


Hay Insurance offers two prices based on forecasted market prices for the year that allow clients to customize their insurance.

Hay Insurance includes Variable Price Benefit. This feature compensates the client when the client has a production shortfall below their insurance coverage and the price of hay increases by at least 10 per cent during the growing season.

The fall market price of hay based on Alberta Agriculture and Forestry’s hay price from the Farm Input Survey for the month of October must increase by at least 10 per cent above the production insurance spring price for hay for the Variable Price Benefit to trigger. The hay price collected on the Farm Input Survey is meant to represent good quality hay, over 50 per cent alfalfa at the farmgate for the month of October, expressed in $/ton. The indemnities are paid using the increased price up to a maximum increase of 50 per cent.