PRF (Pasture, Rangeland, and Forage) Rainfall Index
Covers ALL counties in the Continental United States
Pasture, Rangeland and Forage Insurance Covers against a "decline in precipitation" within
the grid compared to historical long-term precipitation averages determined by NOAA.
Applications and acreage reports are due November 15 for 2019 coverage.
Premium not billed until September 1, 2019.
The USDA has implemented a risk management product to give protection to ranchers and farmers 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 $0.50 through $6.00 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 ranches and/ or farms.
- Coverage 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. This allows an increase or decrease in the price.
The sales closing and acreage reporting date is November 15 preceding the start of the crop year.
Premium is not due until the following September 1.
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
The Grid ID #, where the insured 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: "0.25 degrees in latitude by 0.25 degrees in longitude, which translates to approximately 17x17 miles at the equator."* So as you move away from the equator the size of the grid changes. Counties have multiple grids.
- *USDA A Risk Management Agency Fact Sheet Pasture, Rangeland, Forage Pilot Insurance Program, Revised August 2015
- 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 level".
- 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 (final grid index) for each interval and grid, then the company issues a loss check when applicable.
Rainfall Index Interval Periods
Coverage is available over 11 intervals, in 2 month increments, giving you greater flexibility.
Here are the Intervals:
You can NOT choose a month twice. Ex: April/May and May/June. This is overlapping months and it is currently not allowed.
A minimum of TWO intervals per crop year must be insured under the Rainfall Index program, with a maximum of 6 intervals.
Rainfall Index available in ALL counties in the Continental United States. We are currently licensed in the following states: TEXAS, NEW MEXICO, OKLAHOMA, and IDAHO
Once you determine your county, acres, grid number and select your intervals, level, and productivity factor, you wait to see how much it rains within your grid during your insured interval. If it rains, that is wonderful because you will have the grass you need for grazing or haying, but if the final grid index is not as much as your "trigger level", as calculated by NOAA, then a payment will be made to you. No action is needed by you or an adjuster.*
Sales Closing and acreage reports on PRF (Pasture, Rangeland and Forage) is November 15.
Click Here to eMail or call for us details 1-877-570-5517.
* (unless you exceed a specified dollar amount or are chosen for a random review)
This is for informational purposes only. See policy for program details.