August 10, 2007
August 10, 2007 - The Risk Management Agency (RMA) now offers two new pilot Group Risk Protection risk management programs for pasture, rangeland and forage (PRF). These innovative pilot programs are based on vegetation greenness and rainfall indices and were developed to provide livestock producers the ability to purchase insurance protection for losses of forage produced for grazing or harvested for hay.
Beginning with the 2007 crop year, the pilot programs were available for testing in selected states. The sales closing date for PRF is Nov. 30. PRF insurance policies use innovative technology to assess losses in forage production across diverse range and pasture environments.
Insurance payments to a producer suffering a loss are calculated based on the deviation from normal precipitation within the grid and index interval(s) selected. This insurance coverage is for a single peril-lack of precipitation.
Producers should work with their crop insurance agents to view the map and index grids for their area, assign acreage to one or more grids based on the location and use of the acreage that is to be insured.
For detailed information about these two pilot programs and a list of counties and states to be tested, visit the RMA Web site, at http://www.rma.usda.gov/policies/pasturerangeforage.