Pasture, rangeland, and forages cover approximately 55 percent of all U.S. land. The Pasture, Rangeland, Forage (PRF) insurance program is designed to help protect livestock operations from the risks of forage loss due to a lack of precipitation. The PRF program uses a rainfall index to determine precipitation – it does not measure actual production or loss of products themselves. The rainfall index uses National Oceanic and Atmospheric Administration Climate Prediction Center data to determine precipitation amounts within an area. The index compares how much precipitation is received versus the long-term average for a specified area and timeframe.
Recently, we had an independent evaluation done of the PRF insurance program to determine its effectiveness as a risk management tool for livestock producers.
The independent evaluation resulted in several recommendations, including:
Adjusting the County Base Value (CBV) productivity range;
Better targeting of indemnities;
Focusing PRF on viable forage production areas;
Focusing coverage on risk-reducing intervals;
Taking an alternative approach to reducing frequent shallow losses; and
Modifying the CBV.
If you would like to read more about the recommendations, they are published in a report now available on the RMA website.
We want to hear any comments you have about these recommendations by November 5, 2020.
Please submit your comments:
By email to: email@example.com
By mail to: Director, Product Administration and Standards Division Risk Management Agency, United States Department of Agriculture P.O. Box 419205 Kansas City, MO 64133-6205
We will carefully review all of your comments and determine what recommendations should be implemented for the 2022 crop year. So, it’s very important for us to hear from you!
I would like to thank the independent evaluators and the producer groups they consulted with to come up with these recommendations. And, I strongly encourage you to provide your feedback to us. We are always looking for your input to make decisions and improve our risk management products to serve America’s producers better!