RISK MANAGEMENT
Pasture, Rangeland and Forage Insurance
The PRF Insurance program is an area based insurance plan for pasture, rangeland, and forage grown for the
intended use of grazing by livestock or haying. It is a risk management tool provided by the federal MPCI
program to insure against lack of precipitation in a producer selected grid area.
PERILS COVERED: Lack of precipitation
COVERAGE LEVELS: Available from 70%-90% of
average rainfall in 5% increments COVERAGE AND CLAIMS: Producers choose their grid
ID numbers based on the location of the insured
cropland. (All acres don’t have to be insured.) Grids
are approximately 17.25 miles x 13.5 miles.
PRODUCTIVITY LEVELS: Producers choose a
productivity factor to match their insurance protection
in relation to the value of the crop being insured. The
productivity factor is selected by the producer as a
percent (available from 60%-150%) of the County
Based Value as determined by RMA. Indemnities are determined by using National
Oceanic and Atmospheric Administration data for the
grid and index intervals that were chosen to insure.
When the final grid index (amount of rainfall during
that interval) falls below the producer’s trigger grid
index (coverage level), an indemnity may be paid.
INDEX INTERVALS: Producers are required to choose
a minimum of two intervals (two month periods) in
which precipitation is important to the operation. The
intervals must not overlap. (Jan-Feb, Mar-Apr, etc.) Coverage is based on the experience of the entire
grid, not individual farms.
SALES CLOSING DATE: November 15, 2018
We know this is a lot of industry jargon. We are here to help. Call your FCS
Financial crop insurance specialist before November 15 for more information.
12 HEARTBEAT | FALL 2018