By Julie Tomascik
Editor

Ranchers considering Pasture, Rangeland and Forage (PRF) insurance for 2027 will have new eligibility and recordkeeping requirements to consider.

The U.S. Department of Agriculture’s Risk Management Agency (RMA) recently approved changes to the federal crop insurance program that take effect with the 2027 crop year.

New requirements for grazing operations include a minimum livestock stocking rate. Ranchers must have enough livestock to equal at least 25% of the average stocking rate for the acres being insured.

“These changes make it even more important for ranchers to review their coverage with their crop insurance agent before enrolling,” said Tracy Tomascik, Texas Farm Bureau associate director of Commodity and Regulatory Activities. “They need to make sure their livestock numbers meet the new requirement and that they have the records to support the stocking rate for the acres they insure.”

RMA also changed how coverage can be allocated throughout the year. No more than 25% of the insured value can be assigned to the January-February interval beginning with the 2027 crop year.

PRF insurance protects against a lack of rainfall on haying and grazing ground. It is designed to help offset replacement feed costs when insufficient rainfall affects forage availability.

Coverage is based on a local rainfall index rather than individual production losses.

RMA uses historical weather data to compare precipitation during selected two-month intervals with historical averages for the same area. If the rainfall index falls below the selected coverage level, an indemnity payment may be triggered.

“PRF gives ranchers another way to manage the financial impact of dry weather,” Tomascik said. “The changes for 2027 don’t change the purpose of the program, but ranchers need to understand the new requirements and make sure the coverage they select fits their operation.”

Farmers and ranchers are not required to insure all pasture acres for the entire year. They can select coverage during two-month intervals based on when rainfall is most important to their operation.

Premiums vary by county, intended use for grazing or haying, coverage level, productivity level and grid location.

Ranchers should review their livestock numbers, stocking-rate records and interval selections before enrolling for 2027 coverage.

Visit the USDA Risk Management Agency or contact a crop insurance agent for more information.