Pasture, Rangeland, Forage Insurance

How it Works

Pasture, Rangeland, Forage (PRF) is an area-based insurance program that replaces income from yield losses caused by low precipitation relative to a historic average on forage produced for grazing or harvesting hay. Claims are based on roughly 17x17-mile grids and a Rainfall Index.

Producers make several choices, including coverage level, index intervals, irrigated practice, productivity factor and number of acres.

Rainfall Index

Coverage is based on rainfall in a defined grid. Because the index is based on rainfall data from the National Oceanic and Atmospheric Administration Climate Prediction Center and not on individual production, you may have poor production on a grid and still not receive an indemnity or vice versa.

You must select at least two, 2-month periods (index intervals) during which precipitation is important to your operation.

Productivity Factor

You can establish a value between 60% and 150% of the county base value and match the amount of your protection to the value of forage that best represents your specific grazing or hay operation.

Coverage Level

You can select a coverage level between 70% and 90% in 5% increments. This will be considered the trigger level to determine whether an indemnity is payable. An indemnity will be payable when the interval index falls below the trigger value.

Irrigated

In 2016, RMA began offering coverage in some states for irrigated hay to cover above-normal irrigation costs due to precipitation shortfalls.

Losses

RMA determines a grazing value based on stocking rates, available forage and the value of the forage in the area. It employs Animal Unit Month data for each state and county to determine the “yield” for grazed acreage and hay prices to determine current value.

PRF Selection Support Tools

Our proprietary crop insurance decision tool will help determine the best insurance selections for your operation. Contact your local FCSAmerica office. 

Deadline

The annual sign-up deadline for PRF is December 1.