Pasture, Rangeland, Forage Insurance Program (PRF) is a federal crop insurance program that provides insurance protection for perennial forage produced for grazing or harvested for hay. The program is administered by the USDA Risk Management Agency (RMA). Click here.
Important Dates Coming up:
12/01- sales closing and acreage reporting
Are you a rancher or hay producer depending on rainfall to ensure your operation produces enough forage for grazing or haying? If so, the Pasture Rangeland Forage (PRF-RI) policy, may be a perfect fit for you!
The PRF policy is an area-based insurance plan that covers perennial pasture, rangeland, or forage used to feed livestock and is offered in all 48 contiguous states. The PRF program is a single peril program, the lack of precipitation is the only insurable cause of loss covered under this program. The RI-PRF is not “drought insurance” and does not insure against abnormally “high temperatures” or “windy conditions.” While a drought may cause a decline in the index value to the point that an indemnity payment is issued to eligible insured producers, a drought being declared in a state, county or area does not, by itself, trigger an indemnity payment under the RI-PRF.
Q: Who is this program designed for? PRF was designed for producers who DO NOT keep detailed hay records because it does not measure actual production loss. The area-based nature of this plan means that losses are not adjusted on an individual producer basis. Instead, if the 17 x 17-mile grid in which your acres are located doesn’t get enough rainfall during a specified two-month interval, you will be paid an indemnity, regardless of your actual production on those acres. Producers do not need to submit a loss claim or notify their agents. RMA calculates any loss, and your insurance company processes any indemnity due. Losses are calculated based on whether the current year’s precipitation in a grid has deviated from normal compared to the historical normal precipitation in the same grid, for the same period.
You may select coverage levels from 70-90%. The lower coverage levels result in less frequent/less indemnities and lower premiums. As a federal crop insurance program, subsidies ranging from 51%-59% also apply.
Q: Who decides whether I got enough rainfall? RMA uses NOAA CPC data to calculate normal precipitation and deviations from normal precipitation. It is important to understand that precipitation is INTERPOLATED TO THE GRID, not measured within the grid. When the interpolated precipitation falls below average for the index interval, it triggers a loss payment to all ranchers who have signed up for the program in the grid that are covered under this interval.
Q: What do I have to do as a producer? We highly suggest contacting us so we can help you determine which intervals to choose to optimize your protection. Selecting index intervals is a critical component of these policies and the result of your selections will directly correspond to your satisfaction with the product. Our decision support technology will allow us to see which index intervals make the most sense for your grid, and what percentage of your acres to insure in each based on historical data.
Q: When can I sign up for PRF? The sales closing date for PRF is December 1. The insurance period runs from January 1 – December 31 and premium will not be due until September of that year.
If PRF isn’t the right fit for you, RMA offers seven livestock plans and an annual forage insurance plan. Either way, give us a call and we can help you decide the option that is right for your operation.