Pasture, Rangeland & Forage Program (PRF)

Producers must choose at least two, 2-month time periods when precipitation is important to their operation. These time periods are called index intervals. Losses are calculated based on a deviation of normal precipitation in a grid using NOAA CPC data. Losses are not based on a single ranch or a specific weather station in a general area. 

A grid is the physical area under which your operation is insured. You are paid based on the losses experienced in the grid for the Vegetation Index or losses interpolated to the grid for the Rainfall Index, which is why it is important that you choose the right grid(s) in which your operation is located. If you have any questions about your grid(s) identification number, please contact your insurance agent. For more information on how grids are measured. 

The Rainfall Index uses NOAA CPC Daily Precipitation Data that interpolates precipitation to the grid. RMA compares the compiled data for each two-month interval with the historical precipitation data for the same time period that is normally expected in the grid. 

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. 

Yes, which index intervals you insure and how much you insure for each interval is very important. Whether insuring under the rainfall index or the vegetation index, it is extremely important for ranchers to review the historical indices tools for your grid along with past production records to determine if these programs will work for your operation and to assess which index intervals correlate well to your production. 

For example, a rancher has an operation in Virginia and has cool season grasses. July and August are normally extremely dry months when the vegetation normally becomes dormant e.g. turns brown.  Since July and August are normally dry, this may not be a good time period to insure. This Virginia rancher may be better served by insuring months earlier in the spring which are important for cool season forage growth and months in the fall that would establish his cool season grasses for fall grazing. 

RMA strongly encourages you to use our decision support tools to help you make the right decision for your insurance needs. Selecting index intervals is a critical component of these policies and the result of your selections will directly correspond to your satisfaction with the product. 

No,  currently participation in the Federal crop insurance program is not a requirement of any current USDA program.