PRF Insurance Program
Pasture Rangeland and Forage
What is Pasture Rangeland Forage Insurance?
The Pasture, Rangeland, and Forage (PRF) Program was developed by the Risk Management Agency (RMA) to act as a risk management tool for the 588 million acres of pasture and rangeland, and the 61.5 million acres of hayland in the United States.
How is a loss determined?
The system used to measure if there is a loss or not consists of splitting land into grids, which are normally 17×17 feet, or 25 degrees latitude x 25 degrees longitude as pertains to the equator. Losses are based on the data from the Rainfall index. Once you choose the grids you want to insure, next you must choose the intervals (called index intervals) that are most important to your growth operation.
What is an interval or index interval?
Intervals are two month periods throughout the year (jan/feb, feb/mar, mar/apr etc). You cannot choose two overlapping intervals (jan/feb feb/mar for example). RMA uses NOAA (NOAA CPC is the National Oceanic and Atmospheric Administration Climate Prediction Center, which is the data set used in the PRF Program) data to determine the average/normal precipitation and the deviations from this normal. There are several other complicated ways they determine precipitation normals and deviations.
If you would like to know more, give us a call today! We have experienced Pasture, Rangeland, and Forage Agents in Calfornia, Oregon, and Nevada standing by to help! (541) 850-8170
When do I purchase Pasture Rangeland and Forage coverage?
PRF Coverage needs to be purchased the prior year for coverage to be effective the following year. The closing date to purchase coverage is November 15th. If you purchase prior to that date, you will be covered in 2019.
How do I pay the premiums for Pasture Rangeland and Forage coverage?
Pasture, Rangeland, and Forage Insurance premiums are paid AFTER the year closes. You aren’t required to pay anything up front even though you are protected for those months.
Read more on our BLOG
How do I report a loss?
When 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.
You do not need to submit a claim or contact your agent because loss will be calculated by RMA and your insurance will process any monies due to you. 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. Losses are not based on a single ranch or a specific weather station in a general area.
Is there a difference between PRF and Drought Insurance?
There is a difference. 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.