Pasture Rangeland and Forage Insurance

PRF Insurance

What is Pasture Rangeland Forage Insurance?

The Risk Management Agency (RMA) developed the Pasture, Rangeland, and Forage Insurance as a Risk Management Tool.  There are 61.5 million acres of hayland in the U.S. and 588 million acres of pasture and rangeland that this policy has the ability to protect.  Simply put, USDA Subsidized insurance designed to pay you when there isn’t enough rain.

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.

Is there a difference between PRF and Drought Insurance?

The RI-PRF is not “drought insurance” and does not insure against abnormally “high temperatures” or “windy conditions.” So, there is a difference. A drought being declared in a state, county or area does not, by itself, trigger an indemnity payment under the RI-PRF. While a drought may cause a decline in the index value to the point that an indemnity payment is issued to eligible insured producers it does not necessarily mean there will be a pay-out to the insured.

2019 Rainfall Index (RI) is based on weather data collected and maintained by NOAA’s Climate Prediction Center. The index reflects how much precipitation is received relative to the long-term average for a specified area and timeframe.

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.  Please keep in mind, you can also insure your leased ground, ground that’s under contract, etc. You have an interest in this ground, because your livestock is on it, therefore, you have the right to insure it with PRF Insurance.  Your Crop Agent can assist with this as well.

How do I pay the premiums for Pasture Rangeland and Forage coverage?

Pasture, Rangeland, and Forage Insurance premiums are due September 1st, the year of coverage. So, you aren’t required to pay anything up front. Most see ROI’s on their investment. Please ensure your Crop Specialist KNOWS crop insurance! They will be a huge help in determining the intervals and grids you choose to cover to ensure the best chance for an ROI instead of payment!

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!

Pasture Rangeland Forage Insurance

How is a loss determined?

It is determined through splitting the land into grids, which are 25 degrees latitude by 25 degrees longitude as it pertains to the equator or 17 by 17 miles.  The first step is to choose the grids you want to insure.  Second, you choose the intervals, or index intervals as they’re called, that are most important to your growth operation. Losses are based on the data from the Rainfall Index of the United States.

How are Losses Paid?

Losses are paid when rainfall or vegetative conditions during a specific time period in a specific area (grid) fall below a selected percentage of historic average conditions. Payments are based on final conditions in an entire grid, not on a specific property within that grid. Individuals select the time periods and the number of acres during each time period that they would like to insure. Losses are paid typically paid 45 days after the interval you’ve selected.

How do I report a loss?

You do not need to submit a claim or contact your agent because losses will be calculated by RMA and your insurance will process and send any indemnities due to you.  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.

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.

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.

2019 Rainfall Index (RI) is based on weather data collected and maintained by NOAA’s Climate Prediction Center. The index reflects how much precipitation is received relative to the long-term average for a specified area and timeframe.

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.

Pasture Rangeland Forage Insurance

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!

What are the benefits of PRF?

  • Producers choose how many acres to insure and what time of year to insure them.
  • Premiums are subsidized up to 59 percent, making this program very affordable.

Here are some helpful links to assist you with further questions or research you may be interested in:

Ferranti-Graybeal Insurance Crop Specialists have extensive experience in meeting the risk management needs of livestock producers.

If you would like to know more, give us a call today!  We have experienced Pasture, Rangeland, and Forage Agents in every state!

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 for Pasture, Rangeland, Forage Insurance is November 15th, don’t wait!

*Please note, the deadline for coverage for next year is Nov 15th– call us if you have questions!