Pasture Rangeland Forage Insurance
Pasture Rangeland Forage Insurance is designed to provide insurance coverage on pasture, rangeland, or forage acres. This program is based off the national rainfall index which determines precipitation for coverage purposes. It does not in any way, measure production or loss of products themselves.
The Rainfall Index uses National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC) data. Then, the Prediction center uses a grid system that will determine precipitation amounts within an area. Each grid is 0.25 degrees in latitude by 0.25 degrees in longitude, basically this is approximately 17 by 17 miles at the equator.
Pasture Rangeland Forage Insurance was created and designed to help protect forage loss that results from a lack of precipitation. Keep in mind, the coverage is applied to specific intervals throughout the policy year, so, don’t confuse this insurance with Drought Insurance. PRF Insurance was not designed to insure against severe or ongoing drought.
You need to make several choices when you choose to insure your grazing or hay production, including coverage level, index intervals, irrigated practice, productivity factor, and number of acres.
That’s why you should work with your licensed crop insurance agent to view the Grid ID Locator map and index grids for your area, and assign acreage to one or more grids based on the location and use of the acreage to be insured. RMA encourages the use of the Grid ID Locator, historical indices tool, and decision support tools available on RMA’s website to help decide whether PRF is the right insurance coverage for your operation.
Coverage and Claims
Coverage for Pasture Rangeland and Forage Insurance is based your selection of coverage level, index intervals, and productivity factor.
The index interval is a two month time period. Your agent should select the time period that precipitation is most important to your operation. You are insuring a rainfall index that’s expected to estimate production, it does not measure direct production or loss.
You select a productivity factor to match the amount of protection to the value of the production that best represents the operation and the productive capacity of your acreage. You don’t have to insure all of your acreage, and you also cannot insure more than what is considered insurable.
Pasture Rangeland Forage Insurance coverage is for a single peril — lack of precipitation. Coverage is based on the experience of the entire grid. It is not based on individual farms or ranches or specific weather stations in the general area. Insurance payments are determined by using NOAA CPC data for their grid(s) and index intervals that were chosen to insure. When the final grid index falls below the policyholder’s “trigger grid index”, the producer may receive an indemnity.
PRF policies can be bought from a crop insurance agent by the sales closing date of November 15th, 2019.
PRF is available in the 48 contiguous states with the exception of a few grids that cross international borders.