PRF Rainfall / Drought Insurance
What is Pasture, Rangeland, & Forage (PRF) Insurance?
- This is a USDA subsidized insurance program offered by RMA designed specifically for Hay and Livestock Producers.
- This program is a Drought Insurance based on a Rainfall Index where you insure your pastures as Grazing Land or Hay Land
|
|
What is insurable?
- Any perennial hay crop and/or perennial pasture is insurable, including Alfalfa.
- Improved pastures, native pastures, brushy pastures, and over seeded pastures are also insurable.
- Cultivated fields where you have any annuals or crops are NOT insurable. Therefore, wheat, oats, sudan, hay grazer, etc. are not insurable, unless it is over seeded into a perennial pasture.
How many acres can I insure?
- You can insure any owned land or leased land where you have livestock grazing or hay fields farmed.
- Not all acres are required to be insured.
How is my ranch insured?
- Your ranch is insured in 17x17 mile grids and 2-month intervals.
- This RMA-USDA subsidized insurance is based on Rainfall in your area.
- National Oceanic and Atmospheric Administration (NOAA) keeps track of all the rainfall data across the nation.
How do I get collect a payment?
- We look up your ranch on a 17x17 mile grid system to see where it is located.
- Once NWS releases the rainfall data for your 2 month interval in your 17x17 mile grid, we will know instantly if you receive any indemnity.
- If the rainfall data comes in below your Coverage Level you insured, then you would collect an indemnity.
- For instance, if it rains 20% of normal rainfall in Jan/Feb in your 17x17 mile grid, and you insured your ranch at 85% coverage level, then you would get paid 2 months later.
- The Actual Rainfall % must fall below your Coverage Level for you to receive any indemnity.
How do I sign up?
- The Deadline to sign up is November 15th each year. AG Southwest needs a signed application/acreage report by this date. You can email us or call us to get an application.
What area/states is this program offered?
- We sell this PRF Drought insurance nationwide wherever its offered. It's available in the 48 contiguous states.
|
More information can be found about the Rainfall Index Policies below:
- Rainfall Index (RI) is based on weather data collected and maintained by the National Oceanic and Atmospheric Administration's Climate Prediction Center. The index reflects how much precipitation is received relative to the long-term average for a specified area and timeframe. The program divides the country into six regions due to different weather patterns, with pilots available in select counties.