Pasture, Rangeland, Forage
Pasture, Rangeland, and Forage (PRF) is a rainfall index plan of insurance.
This program is designed to help protect a producer’s operation from the risks of forage loss due to the lack of precipitation. It is not designed to insure against ongoing or severe drought, as the coverage is based on precipitation expected during specific 2-month intervals only. It is available for grazing and/or haying.
Here are some important dates to keep in mind for North Alabama. Your area may have different dates so it is important to check the Actuarial Information Browser on the Risk Management Agency’s website, which will have information specific to your county and state. If you need help using the Actuarial Information Browser I will be glad to try to answer your questions if you’d like to give me a call, or you may can reach someone with directly with RMA.
The Sales Closing Date, Cancellation Date, and Acreage Reporting Date is the December 1st that is prior to the insured year.
The crop year is 12 months and begins January 1st.
The contract change date is August 1st.
The premium billing date is September 1st.
This is an area-based plan that operates on 17x17 mile grids that are formed in line with the equator. Most group risk insurance provides coverage at the county level, but this product provides coverage at the grid level, which is likely to provide a more accurate estimate of rainfall for a particular acreage than a county level measure. The 17x17 mile grids do not follow state, county or geopolitical boundaries. Each grid is individually rated on the data for that grid.
The rainfall index is based on NOAA Climate Prediction Center precipitation data. FCIC sets an expected grid index and final grid index based on mean accumulated precipitation within specified intervals from NOAA’s data. The data used to measure rainfall comes from NOAA. NOAA obtains the data from the four reporting stations closest to the center of the grid that report data for that day.
The only insurable cause of loss for a Rainfall Index Policy is having a Final Grid Index less than the Trigger Grid Index. If the Final Grid Index falls below the Trigger Grid Index an indemnity may be due.
Here are the current subsidy factors for our area.
Coverage Levels:
70 to 90 percent in 5% increments (most people in our area get PRF at 90% trigger)
May select only one level for each insured county and crop type (i.e. 90% for grazing, 80% for haying)
Productivity Factor:
Allows insured to individualize their coverage based on the productivity of the acreage insured
Between 60% and 150% in 1% increments – only one factor can be selected by county, crop and intended use. (most people go for 100% or 150%)
Index Intervals:
There are 11 index intervals, selected in 2-month increments
Must select at least 2 intervals (do not have to be contiguous, cannot overlap)
Minimum % of value in any one interval by grid ID is 10%.
Maximum % of value is specified in the actuarial documents.
If you insure land via PRF for grazing, you must also own the livestock that will be grazing that land.
When precipitation falls below average for the index interval, it triggers a loss payment for that grid. If you signed up for this plan, and that specific index interval, then you do not need to submit a loss claim. RMA calculates any loss and your insurance company processes any indemnity due. Losses are calculated based on whether the current year’s precipitation in a grid has deviated from normal compared to the historical normal precipitation in the same grid, for the same period. Losses are not based on a single farm or a specific weather station in a general area.
I would love to get you a quote if you are interested in this plan, so please reach out with any questions you may have.
Updated 5/26/2025
This information is not all inclusive and is meant to be used for general guidelines for educational purposes only. You the reader assume full responsibility for how you choose to use it. For additional information, please see crop provisions, reference the crop insurance handbook or loss adjustment manual, or contact your crop insurance agent. This institution is an equal opportunity provider and employer.