How it Works

• Pasture, Rangeland, Forage (PRF) is an area-based insurance program that protects against yield losses caused by low precipitation relative to a historic average on forage produced for grazing or harvesting hay. Claims are based on roughly 17×17-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.

RMA PRF Support Tools

• The RMA offers PRF support tools, including the grid locator, historical indices and decision
  support tools, to help you determine whether PRF is right for your operation. Or, contact your local FCSAmerica office.

Deadline

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