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Pasture, Rangeland, Forage (PRF)
overview
The Pasture, Rangeland, Forage (PRF) insurance program is a federal crop insurance pilot program that provides insurance protection for perennial forage produced for grazing or haying. Due to the difficulties in measuring price and yield for forage crops—depending on the policy state—the program is based on the average rainfall in a selected area (grid) for a period of time (index interval). If the rainfall is less than expected, the insured is entitled to an indemnity payment. Coverage is based on a producer’s selection of coverage level, index intervals, and productivity factor.
NOTE: Prior to the 2016 Reinsurance Year (RY), PRF policies could be based on either the average rainfall or the density of vegetation in a grid for a period of time (index interval). For the 2016+ RYs, PRF policies can only be created using average rainfall in a grid for a period of time (using the Rainfall Index (RI)).
NOTE: Beginning with the 2020 RY, RMA requires that AIPs transmit latitude and longitude for the Points of Reference (PORs) used to establish the Grid ID for PRF and Apiculture. See "Add a Point of Reference (POR) for PRF/Apiculture" for help with adding PORs for PRF.
Important Terminology
GRID
To measure the amount of rainfall in a given area, the insurance program uses grids identified by the National Oceanic and Atmospheric Administration (NOAA). The rainfall found in these grids is measured by weather station (Rainfall Index - RI), and from these measurements, a grid-level yield estimate is established.
INDEX INTERVAL
This is a period of time (2 months for the RI), indicated by the grower, when rainfall (RI) is important to their operation. This, used in conjunction with the selected grid, determines when indemnity is paid. If, during the selected index interval, a grid receives less rain, a grower is due an indemnity payment. As such, it's critical that the index intervals chosen reflect the typical expectations of the grid where the coverage is located.
PRODUCTIVITY FACTOR
A productivity value (per acre) has been established for each county based on income received for haying and grazing operations under normal rainfall conditions. Growers can select a protection factor between 60 and 150 percent of the county value. They will want to select the amount of protection based on the forage value that best represents their specific grazing or hay operation, as well as the productivity of their land. The premium cost will increase or decrease, depending on the protection factor selected. Growers can only select one productivity factor for each crop type and county.