Pasture Rangeland and Forage Insurance

PRF Insurance

What is Pasture Rangeland Forage Insurance?

The Risk Management Agency (RMA) developed the Pasture, Rangeland, and Forage Program as a Risk Management Tool for the 61.5 million acres of hayland and the 588 million acres of pasture and rangeland here in the United States.

The Pasture, Rangeland, and Forage Insurance Program in California, Oregon, Washington, Utah, Colorado, Arizona and Nevada

Pasture, Rangeland, Forage Insurance Program was created to give insurance coverage on pasture, rangeland, and forage acreage. A rainfall index is used to determine the coverage.  The coverage determination does not take into account the measurement of production or loss of the products themselves. NOAA data is used along with a grid system to determine precipitation amounts in a certain area. The grids are set up about seventeen miles by seventeen miles, or 25 degrees latitude by 25 degrees longitude. The acreage is assigned to a grid based on the location that is to be insured.

Can this insurance program insure against drought?

The reason Pasture, Rangeland, and Forage Insurance Program (PRF) was created is to protect your operation if there is a lack of precipitation.  The PRF Program runs in sixty day intervals, therefore, it goes Jan/Feb, Feb/Mar, Mar/April and on…This program will not insure against any long term drought. If there is a lack of precipitation during the sixty day interval you’re insured for, you are protected against lack of growth or production of your product or any by-product you may use to feed your animals.

What is the difference between PRF and Drought Insurance?

PRF is not drought insurance. This Insurance Program will not insure against abnormally windy conditions or abnormally high temperatures. A drought may cause a decline in the index value of your Pasture, Rangeland, and Forage policy to the point a payment for loss is issued if you’re eligible, however, a drought being declared in a state, county or area does not, by itself, trigger and indemnity payment under PRF Insurance.

What is an interval or index interval?

Intervals are sixty day periods throughout the year that go in two month increments (Jan/Feb, Feb/Mar, 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 any deviations from this normal.

Pasture Rangeland and Forage Insurance

How do you choose the proper interval?

You and your Insurance Agent will determine the intervals that are the most volatile and most likely to affect your product that results in a loss. You can select the period that is most important to your operation. For instance, if precipitation in January is important to the beginning process of growing each year and this January is dry (below average precipitation), the PRF Insurance would kick in and cover you for potential loss.  That is, if you had the Jan/Feb interval chosen for coverage.  You can select a coverage level from 70-90%. You are essentially insuring a rainfall index that is expected to estimate production.

Will my crop agent help?

It is important that you work with your crop agent to make decisions on all the different choices to make, such as: coverage level, index intervals, irrigated practice, productivity factor, and the number of acres you wish to insure (as you don’t have to insure all of them).  You and your Crop Agent should take a look at the Grid ID Locator map and index grids for your area to determine where to assign acreage on the grid or grids.

We have a team of experienced Crop Agents who are familiar and working with The Pasture, Rangeland, and Forage Insurance Program with our customers. Please give us a call to learn more! The closing date to purchase this insurance for coverage NEXT year is November 15th. So, don’t waste time- we’re here, ready to help!

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.

When do I purchase Pasture Rangeland and Forage coverage?

Pasture, Rangeland, and Forage coverage is purchased the prior year so that it is effective for the following growing year. November 15th is the closing date to purchase this coverage for the next year. Purchasing prior to that date will ensure coverage for the following year.

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….

If you would like to know more, give us a call today!  We have experienced Pasture, Rangeland, and Forage Agents in Calfornia, Oregon, Washington, Arizona, Utah, Colorado and Nevada standing by to help!  (541) 215-2412

How do I report a loss?

A loss is triggered when precipitation falls below average for the index interval, and a loss payment is paid out to all ranchers who have signed up for the program in the grids 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.

At Ferranti-Graybeal Insurance Services we have experienced crop agents standing by ready to assist you. 

Give us a call today! (541) 215-2412

Deadline is November 15th, don’t wait!

*Please note, the deadline for coverage for next year is Nov 15th– call us if you have questions! (541) 850-8170