Enrollment is now open for farmers to sign up for a federally subsidized, pilot drought insurance program designed to protect hay and other forage crops. Historically, crops such as hay have been viewed as low risk in Maine, due to adequate rain fall.  But this year has been difficult for some hay growers, especially in southern Maine, and elsewhere in New England. University of Maine Cooperative Extension  recently polled growers of a number of crops to ascertain how the summer drought has affected yields. "Anecdotally, a lot of people said they had reduced hay yields, their second and third cuts were lower."  says Erin Roche a crop insurance specialist with University of Maine Cooperative Extension. But whether farmers are spooked enough to seek out the new insurance, remains to be seen. The insurance, known as the Pasture, Rangeland, and Forage Crop Pilot Program, works differently to other kinds of crop insurance. It's not based on historical yields to determine impact and payout, rather it relies solely on historic rainfall data collected by the National Oceanic and Atmospheric Administration, or NOAA,  over the last 50 years. "If the actual rainfall during that year falls below a certain percentage of that 50 year average rainfall, then a loss payment might be triggered." says Roche. Many such payments would be triggered automatically under the pilot system, which Roche says could mean less onerous reporting  for growers. "But it's important for farmers to know that if they experience a loss, but there is no corresponding drop in measured rainfall, no payment would likely be issued. It's different from other types of insurance they may be familiar with." Premiums are federally subsidized by 51% to nearly 60%. Source - http://mainepublic.org