Pasture, Rangeland, Forage (PRF) Pilot Insurance Program
Additional Information
The Risk Management Agency's (RMA) Pasture, Rangeland, Forage (PRF) Pilot Insurance Program is designed to provide insurance coverage on your pasture, rangeland, or forage acres. This innovative program is designed to give you the ability to buy insurance protection for losses of forage produced for grazing or harvested for hay, which result in increased costs for feed, destocking, depopulating, or other covered actions.
The Rainfall Index uses National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC) data and each grid is 0.25 degrees in latitude by 0.25 degrees in longitude, which translate to approximately 17x17 miles at the equator. You must select at least two, 2-month time periods where precipitation is important to your operation.
These time periods are called index intervals. Your insurance payments are determined by using NOAA CPC data for the grid(s) and inde3x interval(s) you have chosen to insure. When the final grid index falls below your "trigger grid index," you may receive and indemnity.
This 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. (You can find more detailed information at the NOAA website: www.cpc.ncep.noaa.gov/products/monitoring_and_data/.)
Pasture, Rangeland, Forage insurance was designed to help protect your operation from the risks of forage losses that are produced for grazing or harvested for hay resulting in increased costs for feed, destocking, depopulating, etc. The program is designed to allow maximum flexibility to meet the risk management needs of your operation. You are not required to insure all your acres, but you cannot exceed the total number of grazing or haying acres you operate.
The program provides protection whil allowing you to insure only those acres that are important to your grazing program or hay operation. By selecting a productivity factor, you can establish a value between 60 and 150 percent of the county base value and match the amount of your protection to the value of forage the best represents your specific grazing or hay operation.