Pasture, Rangeland , Forage

The Risk Management Agency (RMA) Pasture, Rangeland, and Forage (PRF) pilot insurance program is designed to provide insurance coverage on your pasture, rangeland, or forage acres. This innovative pilot program is based on precipitation and the Rainfall Index. This program is designed to give you the ability to buy insurance protection for losses of forage produced for grazing or harvested for hay, which result in increased costs for feed, destocking, depopulating, or other actions.

PRF is available in the 48 contiguous states with the exception of a few grids that cross international borders. The Rainfall Index will replace the Vegetation Index beginning in the 2016 crop year.

RMA introduced a pricing methodology starting with the 2016 crop year that will better reflect your replacement costs for feed and the actual losses you experience. RMA is also offering an irrigated hay practice in some states that is designed to cover above normal irrigation expenses when normal precipitation shortfalls are observed. However, normal irrigation costs are not covered.

Rainfall Index
The Rainfall Index is an area-based plan of insurance, and is based on a National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC) interpolated rainfall data set and uses an approximate 17-mile square grid. Producers must select at least two, two-month time periods called index intervals in which precipitation is important for the growth and production of the forage species. Insurance payments to a producer are calculated based on the deviation from normal precipitation interpolated to the grid and index interval(s) selected. This insurance coverage is for a single peril — lack of precipitation. It is critical that producers review the historical indices for their grid ID to determine how well the past results correspond to their past observations.

Rainfall Index Intervals
Rainfall Index Intervals are periods of time specified in which precipitation data is collected. Index intervals are used to calculate the expected grid index and final grid index, which is designated as a practice in the Special Provisions. More than one index interval must be selected by the insured during the crop year for each intended use, share, and grid ID. The maximum percent of value allowed in any one index interval by grid ID, intended use, and share, is 60%, and the minimum percentage of total insured acres allowed in any one index interval by grid ID, intended use, and share is 10%.

An insured may select any index interval provided in the Special Provisions; however, overlapping months are not permitted within a single grid ID, intended use, and share. For example, if an insured selects the index interval which includes the months of April and May, they cannot select any other interval that contains April or May.