PRF (Pasture, Rangeland, and Forage)

Pasture, Rangeland and Forage Insurance Covers against DROUGHT! 

The USDA has implemented a risk management product to give protection to farmers and ranchers who depend on pasture, rangeland, and forage for grazing and/or haying. The premium on PRF is relatively inexpensive. The premium cost in most counties ranges from $0.25 through $1.50 per acre on grazingland. Call us at 1-877-570-5517 to see if this premium rate applies in your area.

About Pasture, Rangeland, and Forage Rainfall Index 

• This risk management tool insures against widespread loss of production of the insured crop in a designated area called a Grid. Coverage is based on the experience of a Grid rather than individual farms. 
• Coverage under both programs is available for two crop types: Grazingland and Hayland. Losses are paid when the Grid’s accumulated index, the Final Grid Index, falls below the insured’s Trigger Grid Index.
• Government subsidizes the premium up to 59%.

Levels of Coverage and Productivity Factors 

• The grower selects a different coverage level and productivity factor for each of the insured crop types in the county. 
• Coverage levels are available from 70% to 90%, in 5% increments. 
• Productivity factors allow individualization of coverage based on the productivity of the crops produced and may be selected from 60% to 150%, in 1% increments.

Important Dates 

The sales closing date and acreage reporting date is November 30 preceding the start of the crop year. Premium is not due until the following July 1. 

Units 

A coverage unit is all insured acres within a Grid ID for each crop type and index interval. 

How It Works 

The coverage is based on a Dollar Amount of Protection per Acre. The actuarial will contain the County Base Value per Acre, by crop type. 

This example is based on grazingland. 

• County Base Value = $7.41 - Published in the county actuarial, by crop type
• Coverage Level = 85% level - Elected by the grower between 70% and 90%
• Productivity Factor = 150% - Grower selects a number between 60% and 150%
• $7.41 x .85 x 1.50 = $9.45 is the Dollar Amount of Protection per Acre 

Grid ID 

The Grid ID #, where the insured crop land is located, is determined by using the RMA website. The Grid is utilized to determine the expected Grid Index and the Final Grid Index which is used in premium and loss calculation. The Grid ID # will be reported on the Acreage Report.

• Rainfall Grid: Acreage within each 12 x 12 mile (0.25 degree) gridded area, established by NOAA and identified by longitude and latitude. 

Grids are approximately 12 x 12 miles, giving many counties multiple grids.

NOTE: Look up your grid ID here: http://agforceusa.com/rma/ri/prf/maps

Loss Payments 

• Indemnities are based on the deviation from normal for each Grid. 
• A payment may be made only if the Final Grid Index for the insured unit is less than the grower’s Trigger Grid Index. 
• The payment will be equal to the payment calculation factor multiplied by the policy protection per unit. 
• No adjuster is needed. NOAA records the rainfall and RMA compiles and checks the rainfall and posts the percentage of normal, then the company issues a loss check when applicable. 

Rainfall Index Interval Periods

The crop year begins January 1 and ends December 31.

There is more flexibility with the program starting in 2010 with 11 Intervals. 

• January/Febuary
• Febuary/March
• March/April
• April/May
• May/June
• June/July
• July/August
• August/September
• September/October
• October/November
• November/December

You can NOT choose a month twice.  Ex:  April/May and May/June.  This is overlapping months and it is not allowed. 

A minimum of TWO intervals per crop year must be insured under the Rainfall Index program, with a maximum of 6 intervals.

Program Availability

Rainfall Index available in Texas in the following counties: 

Andrews, Aransas, Archer, Atascosa, Bandera, Bastrop, Baylor, Bee, Bell, Bexar, Blanco, Bosque, Brewster, Brooks, Brown, Burnet, Caldwell, Calhoun, Callahan, Cameron, Clay, Coke, Coleman, Comal, Comanche, Concho, Coryell, Crane, Crockett, DeWitt, Dimmit, Duval, Eastland, Ector, Edwards, Erath, Fayette, Fisher, Foard, Frio, Gillespie, Glasscock, Goliad, Gonzales, Guadalupe, Hamilton, Hardeman, Haskell, Hays, Hidalgo, Hood, Howard, Irion, Jack, Jackson, Jim Hogg, Jim Wells, Jones, Karnes, Kendall, Kennedy, Kent, Kerr, Kimble, King, Kinney, Kleberg, Knox, Lampasas, La Salle, Lavaca, Live Oak, Llano, Loving, McCulloch, McMullen, Martin, Mason, Maverick, Medina, Menard, Midland, Mills, Mitchell, Montague, Nolan, Nueces, Palo Pinto, Parker, Pecos, Reagan, Real, Refugio, Runnels, San Patricio, San Saba, Schleicher, Scurry, Shackelford, Somervell, Starr, Stephens, Sterling, Stonewall, Sutton, Taylor, Terrell, Throckmorton, Tom Green, Travis, Upton, Uvalde, Val Verde, Victoria, Ward, Webb, Wichita, Wilbarger, Willacy, Williamson, Wilson, Winkler, Wise, Young, Zapata, and Zavala.

It is also available in some other states.

Summary 

Once you determine your county, acres, grid number and select your intervals, level, and productivity factor, you sit back and wait to see if it rains. If it rains, that is wonderful because you will have the grass you need for grazing or haying, but if it does not rain as much as your "trigger factor", then a payment will be made to you. No action is needed by you or an adjuster. 

 Sales Closing on PRF (Pasture, Rangeland and Forage) NOV 30.

Click Here to eMail or call for us details 1-877-570-5517.