Pasture Rangeland Forage Insurance
Pasture Rangeland Forage Insurance is designed to provide insurance coverage on pasture, rangeland, or forage acres. This program is based off the national rainfall index which determines precipitation for coverage purposes. It does not in any way, measure production or loss of products themselves.
Pasture, Rangeland, and Forage (PRF) Insurance Program in California, Oregon, and Nevada offer livestock producers risk protection for losses of forage produced for grazing or harvested for hay. The products are made to function in many range and pasture environments. They use technology to determine when someone has suffered a loss by looking at The Rainfall Index over the past years for that same time period.
The Rainfall Index uses National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC) data. Then, the Prediction center uses a grid system that will determine precipitation amounts within an area. Each grid is 0.25 degrees in latitude by 0.25 degrees in longitude, basically, this is approximately 17 by 17 miles at the equator.
Pasture Rangeland Forage Insurance was created and designed to help protect forage loss that results from a lack of precipitation. Keep in mind, the coverage is applied to specific intervals throughout the policy year, so, don’t confuse this insurance with Drought Insurance. PRF Insurance was not designed to insure against severe or ongoing drought.
WHAT IS THE RAINFALL INDEX PLAN IN RELATION TO PASTURE RANGELAND AND FORAGE INSURANCE?
The Rainfall Index (RI) plan of insurance is a risk management tool to ensure against a decline in an index value that is based on the long-term historical average precipitation for an approximate 17×17 mile grid over specific two-month time intervals. The intervals start with Jan/Feb, Feb/Mar, etc. A producer may not choose overlapping intervals (Jan/Feb and Feb/Mar for example). A producer must select a minimum of two index intervals for coverage under the Pasture, Rangeland, and Forage Insurance Plan. The insured selects which index intervals to cover and the amount of coverage. The selection of index intervals is critical to the effectiveness of the RI plan as a risk management tool. Coverage is based on indexes for the grid, not the producer’s actual rainfall.
“The RMA has been working for a long time to provide subsidized coverage for livestock producers similar to what crop farmers have enjoyed for decades,” says Max Thomas, of Silveus Insurance Group, Lubbock, TX. “And this is the first time RMA has rolled out a program that offers a buy-up, low-deductible coverage for rancher’s basic crop which is grass and hay.”
You need to make several choices when you choose to insure your grazing or hay production, including coverage level, index intervals, irrigated practice, productivity factor, and number of acres.
That’s why you should work with your licensed crop insurance agent to view the Grid ID Locator map and index grids for your area, and assign acreage to one or more grids based on the location and use of the acreage to be insured. RMA encourages the use of the Grid ID Locator, historical indices tool, and decision support tools available on RMA’s website to help decide whether PRF is the right insurance coverage for your operation.
COVERAGE AND CLAIMS
Coverage for Pasture Rangeland and Forage Insurance is based on your selection of coverage level, index intervals, and productivity factor.
The index interval is a two-month time period. Your agent should select the time period that precipitation is most important to your operation. You are insuring a rainfall index that’s expected to estimate production, it does not measure direct production or loss.
You select a productivity factor to match the amount of protection to the value of the production that best represents the operation and the productive capacity of your acreage. You don’t have to ensure all of your acreage, and you also cannot insure more than what is considered insurable.
Pasture Rangeland Forage Insurance coverage is for a single peril — lack of precipitation. Coverage is based on the experience of the entire grid. It is not based on individual farms or ranches or specific weather stations in the general area. Insurance payments are determined by using NOAA CPC data for their grid(s) and index intervals that were chosen to insure. When the final grid index falls below the policyholder’s “trigger grid index”, the producer may receive an indemnity.
PRF policies can be bought from a crop insurance agent by the sales closing date of November 15th, 2019.
PRF is available in the 48 contiguous states with the exception of a few grids that cross international borders.
WHAT ARE SOME BENEFITS OF THE PASTURE RANGELAND AND FORAGE INSURANCE PROGRAM?
The program is designed to give producers more options as a business owner and manager. It may provide more cash flow to restock herds once a drought is over, buy more feed, lease alternative pastureland, or pay leases when herds have been culled to very low levels.
Pasture, Rangeland, and Forage Insurance, PRF Insurance, is a policy that’s designed for ranchers! It’s subsidized, rated well, and covers exactly what causes sleepless nights! How could you NOT take advantage of this policy? Plus, the ROI is unheard of!
Allow our Pasture Rangeland and Forage Insurance Specialists who grew up on ranches and understand the specific needs of every rancher, to help you discover up to 300% ROI from this policy! We specialize in this policy and we are happy to design the perfect policy to fit your land and ranch operation needs!
One of our Specialists, Dylan Pettyjohn, was born and raised on a ranch in Morrow County, OR. He worked on the carrier side as a crop adjuster for 6 years for a Federally approved insurance provider. He was promoted to Regional Marketing Manager where he helped train agents on Crop Insurance so they could better assist the ranchers and farmers they served.
Dylan was also utilized for his input in CREATING the Pasture Rangeland and Forage Insurance Policy- how it works, how to quote it, and how to maximize it for the Rancher and Farmer (he did this for 3 years across 9 states).
A lot of folks ask-
WHAT IS THE DIFFERENCE BETWEEN PASTURE RANGELAND AND FORAGE INSURANCE (PRF) AND DROUGHT INSURANCE?
Pasture Rangeland and Forage Insurance (PRF) is not drought insurance. This Insurance Program will not insure against abnormally windy conditions or abnormally high temperatures. A drought may cause a decline in the index value of your Pasture, Rangeland, and Forage policy to the point a payment for loss is issued if you’re eligible, however, a drought being declared in a state, county or area does not, by itself, trigger and indemnity payment under PRF Insurance.
Graybeal Group, Inc. Offers a Wide Range of Products and Pricing
Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff. With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch.
Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business. At Graybeal Group, Inc., we are committed to providing an experience that empowers our clients so they are educated on their coverage and the value we provide above all others.
For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523.