How does Pasture Rangeland and Forage (PRF) Insurance Program insure against lack of precipitation?
Pasture, Rangeland, and Forage (PRF) Insurance Program in California, Oregon, and Nevada offers livestock producers risk protection for losses of forage produced for grazing or harvested for hay. The products are made to function in many range and pasture environments. They use technology to determine when someone has suffered a loss by looking at The Rainfall Index over the past years for that same time period.
The products are available through approved insurance providers, or give us a call- we have experienced Crop Agents in Oregon, California, and Nevada who are ready to help! 541-850-8170
What is the Rainfall Index plan in relation to Pasture Rangeland and Forage Insurance?
The Rainfall Index (RI) plan of insurance is a risk management tool to insure against a decline in an index value that is based on the long-term historical average precipitation for an approximate 17×17 mile grid over specific two-month time intervals. The intervals start with Jan/Feb, Feb/Mar, etc. A producer may not choose overlapping intervals (Jan/Feb and Feb/Mar for example). A producer must select a minimum of two index intervals for coverage under the Pasture, Rangeland, and Forage Insurance Plan. The insured selects which index intervals to cover and the amount of coverage. Selection of index intervals is critical to the effectiveness of the RI plan as a risk management tool. Coverage is based on indexes for the grid, not the producer’s actual rainfall.
“The RMA has been working for a long time to provide subsidized coverage for livestock producers similar to what crop farmers have enjoyed for decades,” says Max Thomas, of Silveus Insurance Group, Lubbock, TX. “And this is the first time RMA has rolled out a program that offers a buy-up, low-deductible coverage for rancher’s basic crop which is grass and hay.”
What are some benefits of the Pasture Rangeland and Forage Insurance Program?
The program is designed to give producers more options as a business owner and manager. It may provide more cash flow to restock herds once a drought is over, buy more feed, lease alternative pastureland, or pay leases when herds have been culled to very low levels.
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