Pasture, Range, Forage Insurance (PRF)
Oct 25, 2019
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 works off of satellite-tracked rainfall amounts recorded in two-month intervals (up to 6) over a 17-mile 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, we will calculate the 10 year average (2009-2018) for grid 23836, which has Seneca and Baileyville within its borders. We will split the year into five (Jan/Feb, Mar/Apr, May/Jun, Jul/Aug, Sept/Oct) 17% intervals and 1 (Nov/Dec) 15% interval. The average payment per acre would be $6.59 with an out-of-pocket cost of $4.06 per acre. That means that for every $1 spent you would receive $1.62. Again, this is a 10 year average. Excessive rainfall years like 2019 wouldn’t pay. If you would like to run your own estimates here is the RMA 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 15th.