The rainfall deficit has brought more than dry air across the Lone Star State this year. Farmers and ranchers have also felt the sting of limited grazing, a shortage of hay and increasing costs for the remaining feedstuffs available.

Those conditions are projected to remain well into 2023, giving additional importance to options for managing risk, especially for pasture and rangelands.

The deadline to enroll acreage for the 2023 Pasture, Rangeland and Forage (PRF) insurance program is Dec. 1.

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. It helps offset replacement feed costs when a loss of forage for grazing or harvested for hay is experienced due to a lack of precipitation.

The U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA) offers the PRF program and policies through crop insurance agents.

“Farmers and ranchers face uncertain weather conditions each year,” said Tracy Tomascik, Texas Farm Bureau associate director of Commodity and Regulatory Activities. “Insurance products like PRF can be an important part of risk management for ranchers, and it’s showing benefits for those currently enrolled.”

The program is based on the local Rainfall Index. RMA uses that information to calculate payments based on the county, estimated stocking rates and current hay prices.

PRF insurance compares the amount of precipitation for a selected time period to the historical average precipitation for the same area during the same period of time.

And this year, drought has impacted forage and hay production all across Texas.

“The drought the state has been experiencing is the prime example as to why this is a vital program,” Tomascik said. “The PRF insurance policy is a useful tool farmers and ranchers should consider, especially with the long-range weather forecast suggesting more dry periods.”

Farmers and ranchers are not required to insure all pasture acres for the entire 12-month time period. Acres can be enrolled in two-month intervals, in any combination, or cover the entire 12-month period by selecting all six two-month periods throughout the year.

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

Visit rma.usda.gov or contact your insurance agent for details.