Pasture, Rangeland, and Forage (PRF) Frequently Asked Questions

You may have questions about how Pasture, Rangeland, and Forage (PRF) coverage can protect your operation. Here, we’ll address frequently asked questions to help you make informed decisions.

How do I choose the right intervals?
Choosing the correct intervals for PRF insurance is crucial because it determines when your policy will respond if there’s a lack of rainfall. You should consider historical precipitation data and your own knowledge of your region’s weather patterns to determine which intervals are most critical for your pasture and forage needs. You should work with a knowledgeable insurance agent who can analyze data trends and guide you on optimal intervals.

What does PRF not cover?
PRF insurance specifically covers the lack of precipitation, so it does not cover issues related to poor soil conditions, disease, pest outbreaks, or other weather events like floods or extreme heat. It’s important to understand that PRF is designed to complement your risk management strategy, not replace the need for other coverages or good management practices.

How is it determined if there is a claim?
Since this is an area plan, the actual crop production is not measured or captured. The determination is based on the precipitation data collected by the NOAA weather stations and how it compares to the historical average.

Are there limits to the coverage?
Yes, coverage is limited to certain percentages of historic average rainfall. To fully understand these limits, speak with your insurance agent.

How do we determine the value of the crop?
The RMA has determined a County Base Value (CBV) for each crop, practice, and type in each county. If you feel your crop is worth more or less than the CBV, you can use the Productivity Factor to increase or decrease its value. The Productivity Factor choice ranges from 60% to 150%.

Remember, understanding PRF insurance starts with asking the right questions. Our Momentum Ag team is here to help you understand how this can fit into your overall risk management strategy. Learn more at momentum.ag.