The registration deadline for pasture fodder insurance is postponed to December 1

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USDA’s risk management agency recently announced that it has extended the registration deadline to December 1 from the historic November 15 date for Pasture Rangeland Drilling (PRF) insurance. Producers now have an additional two weeks to work with their crop insurance agents to develop insurance plans for the year 2022. The PRF insurance program uses a data-driven precipitation index model weather (precipitation) collected and maintained by the NOAA Climate Prediction Center to determine losses and trigger compensation. The index reflects the amount of precipitation received relative to the long-term average for a specified grid area during a given two-month period.

Factors affecting insurance premiums

Insurance premiums and indemnities are based on the level of coverage (70% – 90%) and level of production (60% – 150%) chosen by the producer.



Pasture and Forage Insurance is a risk management tool that provides income to compensate for loss of forage production due to lack of rainfall. Troy walz
Courtesy photo

Producers can insure their land either for grazing or for haymaking. For land that is insured for haymaking, forage production must come from perennial forages such as grass or alfalfa. Annual forages are not eligible for this program. Land insured for haymaking has a higher premium than pasture because a higher level of forage production is expected.

Producers using this insurance will have to choose the periods of the year for which they wish to be insured. There is more information and a decision support tool on the PRF decision support tool website.



Using this tool provides some information.

Assuming the decision support tool is correct, purchasing pasture fodder insurance for spring / summer rainfall of the year would have been a profitable proposition for most producers over the past 30 years. last years.

Ensuring the periods when rainfall has the most impact on rangeland forage production best matches the variability of rainfall with the risk of forage production.

Factors to consider when evaluating the use of PRF insurance

Here are things to know when evaluating this insurance as a possible risk management tool.

Land can be insured for grazing or haymaking using PRF insurance. Acres insured for haymaking cost more to insure and also pay more when compensation occurs. This insurance provides the option of insuring irrigated hay, which can help offset additional costs and lost production that can accompany drought conditions even with irrigation.

Insurance is subsidized 51 to 59% by the federal government depending on the level of coverage. This is why in the long run for most producers, purchasing insurance translates into more money received in insurance claims than premiums paid.

Rangeland and pasture research has shown that rainfall from April to July accounts for the majority of the variation in forage production for this region.

This insurance product is best used in the long run when a producer participates each year and doesn’t try to guess what the next year will bring.

Since the precipitation data is based on NOAA weather recording stations, what happens at these locations will often be different from the precipitation on the acres insured by growers. In the long run, these differences and any compensation due to precipitation deficits should equalize.

Be a smart consumer and understand how insurance would have historically worked for your operation based on the levels of coverage and the months you plan to insure before purchasing.

Pasture and Forage Insurance is a risk management tool that provides income to compensate for loss of forage production due to lack of rainfall. While insurance payouts are unlikely to compensate for the total loss caused by drought, they can help offset the impact of those losses.

–UNL extension


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