Ranchers are all-too-familiar with how dry Texas can get. But Pasture, Range, and Forage (PRF) Insurance is a risk policy designed to provide annual protection for farmers and ranchers who rely on forage products to support their livestock operations.
The program is designed to give farmers and ranchers the ability to help cover replacement feed costs when a loss of forage for grazing or harvested for hay is experienced due to lack of precipitation.
The U.S. Department of Agriculture Risk Management Agency offers the PRF program and policies covering the 2021 calendar year through crop insurance agents until Nov. 15. Premiums will be billed on Sept. 1, 2021.
“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.
Premiums for PRF Insurance vary by county, use for grazing or haying, coverage level, productivity level, intervals chosen and grid location.
Farmers and ranchers are not required to insure all pasture acres for the entire 12-month period.
Payment is not determined by individual damages but rather area losses based on a grid system.
Farmers and ranchers can select any portion of acres to insure, but a minimum of two and a maximum of six two-month periods must be selected.
Coverage levels between 70 percent and 90 percent are available, Jones said. Once coverage is selected, the producer also chooses 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.
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.
For more information, visit rma.usda.gov or contact your insurance agent.