Farm Insurance 101: Pasture, Rangeland, and Forage (PRF)

The Pasture, Rangeland, and Forage insurance (PRF) program is designed to cover losses caused by insufficient rainfall. Utilizing a rainfall index based on data from the National Oceanic and Atmospheric Administration (NOAA), coverage amounts are selected based on the expected precipitation during specific intervals.

Customization is a key feature of the PRF program. Tailor a policy by choosing:

1. Coverage level – Options range from 70 to 90 percent of the expected precipitation.
2. Timeframe – A minimum of two index intervals, each representing two-month periods, are required. The periods selected should be when precipitation is most important to a producer’s operation. 
3. Productivity Factor – A multiplier for payments.
4. Number of Acres – Determine the number of acres to insure. Producers do not have to insure all acres but cannot insure more than total number of insurable acres.

When it comes to claim payments, the final grid index is compared with your trigger index. If the final index falls below the trigger index, you may be eligible for an indemnity payment. It is important to understand that coverage is determined based on the experience of the entire grid, rather than individual farms.

To aid in your decision-making process, the Risk Management Agency (RMA) offers various tools on their website. These include the Grid ID Locator map, index grids, and decision support tools. These resources can provide valuable insights and assist you in making informed choices regarding the PRF program.

In conclusion, if you find yourself grappling with the impact of drought conditions on your haying and grazing ground, exploring the Pasture, Rangeland, and Forage insurance (PRF) program could be a viable solution. By leveraging the rainfall index, customization options, and support tools provided by the program, you can better manage the challenges brought about by a dry year. Make your elections before December 1st to secure the coverage you need.

To learn more about the insurance products available for farm risk management, reach out to Chelsea Heatherington at Kingsgate Insurance.

Chelsea Heatherington, Farm & Ag Specialist

Call or Text: 515-302-8400

Email: chelsea@kingsgateins.com