The deadline to sign up for Pasture, Rangeland and Forage (PRF) insurance is Friday, Nov. 15.

PRF is a risk policy designed to provide annual protection for farmers and ranchers who rely on forage products to support their operations, according to Texas A&M AgriLife Extension Service.

“In the face of uncertain weather conditions, insurance becomes a critical component in producers’ risk management portfolios,” said DeDe Jones, AgriLife Extension risk management specialist in Amarillo.

The U.S. Department of Agriculture Risk Management Agency (RMA) offers the PRF program and policies covering the 2020 calendar year through crop insurance agents until Nov. 15.

Premiums are billed on Sept. 1, 2020.

Premiums for PRF insurance vary by county, use for grazing or haying, coverage level, productivity level, intervals chosen and grid location.

“While this coverage for ranchers’ haying and grazing perennial acreage has been available for a while, this year there is a change in the eligibility requirements,” Jones said. “To qualify now, pasture/rangeland producers must have an insurable interest in the livestock grazing their land.”

Farmers and ranchers are not required to insure all their acres for the entire 12-month period. Selections for acres or months most important to their grazing and/or haying operations can be made, rather than the entire period.

Payment is not determined by individual damages, but rather area losses based on a grid system, Jones said. Farmers and ranchers must select between a minimum of two and a maximum of six two-month periods.

Coverage levels between 70 percent and 90 percent are available.

Once coverage is selected, farmers and ranchers also choose a productivity factor between 60 percent and 150 percent. The productivity factor is a percentage of the established county base value for forage.

The base value is a standard rate published by the Risk Management Agency for each county. It is calculated based on estimated stocking rates and current hay prices.

Jones noted the program uses a rainfall index to determine potential indemnity payments.

Alfalfa and other irrigated hay can be insured under a PRF policy at different coverage levels and higher base values.

A decision-support tool is available online through RMA’s website to help producers determine coverage levels and intervals.