Insurance Levels for PRF Fell Sharply in 2019.

USDA’s Pasture, Rangeland and Forage is an area-based insurance plan that covers pasture, rangeland or forage used to feed livestock by insuring against the lack of precipitation. In the event the precipitation amounts within an area fall below the insured level and rainfall index, PRF uses county-based values to make a loss payment to the policyholder. The lack of precipitation is the only insurable loss under PRF.

For 2019, USDA’s Risk Management Agency modified the method for determining CBVs for PRF to reflect the value of forage production per acre, grazing fees and state-level pasture rental rates. This will better account for state-level average grazing fees and pasture rental rates than using hay prices alone.  For more, please click here.