Pasture, Rangeland, Forage Insurance summary of sales and performance history
This article was first published in RightRisk News in October 2023.
The last four years have reminded livestock producers throughout the country of the risk of drought. For many livestock producers, their livelihood is dependent upon perennial grass production that is dependent upon an adequate amount of rainfall. One tool that can help mitigate the short-term financial risk associated with the lack of rainfall is the Pasture, Rangeland, Forage (PRF) insurance program, administered by the USDA – Risk Management Agency (RMA). PRF is available for purchase from crop insurance agents with coverage available on a calendar year basis in all forty-eight contiguous states. The signup deadline for calendar year 2024 coverage is December 1, 2023.
PRF insurance is a group insurance policy based on grids 0.25 degrees longitude by 0.25 degrees latitude. It uses precipitation data from the National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC), providing producers with the opportunity to insure 70 percent to 90 percent of the Expected Grid Index Precipitation across a series of two-month intervals dispersed throughout the calendar year. Premium subsidies range from 51 percent to 59 percent, depending upon the coverage level selected. Continue reading on the Center for Ag Profitability website.