PRF (Pasture, Rangeland, Forage) Insurance

How it Works

This insurance coverage protects against the yield loss in pastures and hay fields due to reduced precipitation compared to previous historical data. It is based around a 17x17 mile grid and a rainfall index that is calculated by RMA, when settling a claim. 

Rainfall Index

Rainfall is determined by the National Oceanic and Atmospheric Administration Climate Prediction Center, not individual locations. There may be poor production on a grid and still not have an indemnity, and vice versa. There are established points within each grid that help to determine the most accurate rainfall for each specific customer.

There must be a minimum of 2 index intervals selected, but up to 6 as well. Intervals are 2-month periods.

Productivity Factor

Select a value between 60% and 150% of the county base value. The higher the percentage the higher the premium, but an increase in total liability as well. 

Coverage Level

Select coverage level between 70% and 90% in 5% increments. This is your trigger level which determines if there is an indemnity payment or not. The payment happens if the rainfall index falls below the trigger value. 

Losses/Indemnities

No claims have to be filed once the policy is in place. RMA will notify and make payments when they are due. Indemnities will be paid towards premiums first, then payments will be made once premiums are fulfilled.