A Drought Risk Management Tool: The Pasture,
Rangeland, Forage Pilot Crop Insurance Program
Typically in Maine hay and forage are viewed as relatively
“low-risk” crops but lack of rainfall this year resulting in poor hay yields
and slow pasture regrowth leaves many wondering what could be done to manage
drought in the future. One possible
solution may be the Pasture, Rangeland, Forage (PRF) Pilot crop insurance program. The PRF is a fairly new insurance option for
Maine farmers, providing protection of pasture, hay, and hayland against a
single peril, lack of precipitation.
Unlike other types of crop insurance, the PRF program is not
based on a farmer’s historical crop yields.
Rather the PRF program uses a rainfall index from the National Oceanic
and Atmospheric Administration (NOAA) Climate Prediction Center as a proxy for the
farmers’ production data. The PRF
program is an area-based policy, meaning losses occur when the reported rainfall
for a 2-month interval over the entire area (12 square mile grid) is below the 50- year historical rainfall data. There
is no claim paperwork to file and if an indemnity is owed, payments are mailed
automatically. Farmers must submit an
annual acreage report including intended use (pasture or hay) and the Farm
Service Agency: Farm Number(s), Tract
Number(s), and Field Number(s); and current Conservation Compliance (Form
AD-1026) to their crop insurance agent. The PRF premium cost is federally subsidized from 51 to 59%.
PRF policies are purchased through private crop insurance
agents. The enrollment deadline is November 15, 2016 for the 2017
insurance year.
More Information
This 2-minute
You-Tube video from NOAA Climate.gov gives an overview of PRF: https://www.youtube.com/watch?v=h4qXlU8Q0wc
The PRF
Factsheet from the Risk Management Agency has more information: http://www.rma.usda.gov/pubs/rme/prfinsprog.pdf
A list of agents serving Maine can be found using the
RMA Agent Locator
online or contact Crop Insurance Education Program Manager Erin Roche (erin.roche@maine.edu or
207.949.2490).
The University of Maine Cooperative Extension is in
partnership with the USDA RMA to deliver crop insurance education in Maine. For more information, please visit the UMaine
Risk Management and Crop Insurance website at: http://umaine.edu/agriculture/maine-risk-management-and-crop-insurance-education-program/.
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