Pasture, Rangeland & Forage (PRF): Insurance for Haying and Grazing Land

Forage losses from natural hazards, especially drought, are frequent. PRF Insurance is an excellent tool producers utilize to provide income that offsets loss of forage and grazing due to dry conditions. Insurance coverage under the Rainfall Index program is for a single peril – lack of rainfall.

Pure and simple, when you purchase a percentage of normal rainfall (expected grid index) for a 2-month interval in the specified grid where your ranch or farm is located, and when rainfall for the grid and interval is below that coverage level, you get paid. Rainfall data is collected daily by National Oceanic and Atmospheric Administration (NOAA), and data dates back as far as 1948.

 

Why Farm Credit of Central Florida, ACA?

Farm Credit of Central Florida, ACA, provides insight, information and risk solutions that are tailored to fit your farming and ranching needs. Our experienced agents provide you with information specific to the historical rainfall for your operation and walk you through a range of customization options for your PRF policy in order to meet your risk objectives.

Our crop insurance customers are members of cooperative, meaning eligible customers receive patronage dividends on our commission—a benefit not offered by regular insurance companies. Patronage dividends could help lower the cost of your premium, in turn making for an even more affordable risk management tool.

 

Features of PRF Rainfall Index

  • Two types of crops are insurable under the PRF Rainfall Index Policy: grazing land and hay land.
  • Choose to insure grazing land, hay land or both. You aren’t required to insure 100% of each crop type(s), and can select different coverage levels and productivity factors for each type.  
  • Elect to cover 90%, 85%, 80%, 75%, or 70% of normal rainfall (Coverage Level).
  • Select between 60% and 150% multiplier of the established value of hay land or grazing land in your county (Productivity Factor).
  • Government subsidizes 51%-59% of the premium, making it more affordable.
  • Coverage is based on the experience of the entire grid where your farm or ranch is located.
  • Must select at least two, 2-month time periods (Index Intervals) where rain is important to your operation or shows the highest return on investment.
  • Indemnity payments are made after an interval closes if a loss is incurred. No adjusters needed. Claims are paid automatically based on data from NOAA.
  • Production reporting, record keeping, or loss adjustments not required.
  • Not required to insure all of your acres.
  • Sales closing date is November 15th. Insurance period begins January 1st and ends December 31st. Billing Date is September 1st.

 

To be insurable, the acreage must:

  • Be established acreage for perennial forage.
  • Be intended for grazing by livestock or for haying.
  • Be suitable for grazing by livestock or for haying.
  • Be planted before July 1st the year prior to coverage starting.

 

Additional Need-to-Knows:

  • Overseeding into existing forage crops is acceptable.
  • The program covers all types of grazing and haying forage.
  • Annually planted forage must be insured with an Annual Forage Insurance Plan

Additional details can be found on the USDA RMA Fact Sheet at https://www.rma.usda.gov/pubs/rme/prfinsprog.pdf

The obligation to pay patronage is established by the Association’s bylaws and board resolutions. Distributions are made only if capital requirements are achieved. Only eligible borrowers can participate in the Patronage Refunds Program.

Certain limitations, conditions, and exclusions apply.  Please refer to the policy for more details.

 

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