Pasture, Range, Forage Insurance (PRF)

Jim Ward, Director of Risk Management

This is an option for insuring your brome, alfalfa, prairie grass, or other forage type hay. It is highly subsidized, cost-effective, and has a history of frequent payouts. It utilizes NOAA Climate Prediction Center data-tracked rainfall amounts recorded in two-month intervals (up to six) over a 17-mile North/South and approximately 13.5-mile East/West grid. Premiums for grazing run about $2-$4/acre and haying runs around $18-$24 (at 90% coverage and 100% productivity factor). 
    
For this grazing example, shown in the following picture, we will calculate the 10-year average (2010-2019) for grid 23236, which is just south of Seneca and has Corning within its borders. We will split the year into five (Jan/Feb, Mar/Apr, Jun/July, Sept/Oct, and Nov/Dec) 20% intervals. The premiums (at 90% coverage and 100% productivity factor on 100 acres) per acre would be $4.21. In the last 10 years, loss payments have exceeded premiums every year except two (see second image example), with some years more than doubling premiums. The last 10 years averaged a 151% payout. If you stretch it out over 29 years, the average payout increases to 161%. If you would like to run your own estimates, here is the USDA Risk Management Agency website https://prodwebnlb.rma.usda.gov/apps/prf . 
 
For more information please call Jim Ward at (785) 741-1652.  The sales closing date for PRF is November 16.