PASTURE, RANGELAND AND FORAGE Rainfall Index Coverage 2016 Crop Year Rainfall Index Coverage

PASTURE, RANGELAND AND FORAGE (PRF) OVERVIEW: PASTURE, RANGELAND AND FORAGE (PRF) INSURANCE COVERAGE New Federally subsidized pilot insurance program offered by RMA designed specifically for hay and livestock producers PRF Program provides a “Buy-Up Coverage” previously unavailable in current FSA “NAP” Programs Deductibles range from as low as 10% to 30%. Only “Buy-Up” coverages offered (no CAT coverage) 588 Million Acres Eligible For Coverage Nationwide PRF Pilot Program Introduced August 9, 2006 Available In Limited Areas Of The Country Policy Is Similar To Group Risk Protection (GRP) Plans Available For Many Row Crops And Wheat

NEW USDA SUBSIDIZED PROGRAM ALFALFA GROWERS!! NEW USDA SUBSIDIZED PROGRAM

PASTURE, RANGELAND AND FORAGE (PRF) Federally subsidized insurance program offered by RMA designed specifically for hay and livestock producers 2013 and Succeeding Crop Years – Pasture, Rangeland, Forage Availability

There are over 9,000 NOAA Weather Stations across the country Rainfall Index Precipitation Measurement There are over 9,000 NOAA Weather Stations across the country It is Impossible to accurately monitor the precipitation every ranch actually receives using this system It is possible to create an index and monitor the precipitation an area receives relative to history

RI Precipitation Measurement Standardized Interpolation Doppler Data Storm Precipitation totals are incorporated into the smoothing method for each Grid

Old Rainfall Data Sure numbers are not accurate for your ranch then. But we don’t care how the numbers were generated, just where they are now.

1 - Type and Location of Land PRF Coverage Is Available for Pasture/Rangeland and any Perennial Hay Crop PRF Coverages Are Based On Range Values Established By FSA For The “NAP” Program (Non-Insurable Assistance Program) CBV’s Are Constant across the county Protection Factor – Gives You The Ability To Increase Or Decrease The County Base Value To More Accurately Reflect The Value Of Your Land. (Selection Range – 60% to 150% of CBV)

1 - Type and Location of Land Rainfall Index RI Is Based On Historical Rainfall Experience In a Small Area Called a Grid RI Grids are approx. 17 miles north to south X 14 miles east to west. Measurement of relative precipitation since 1948 Average Rainfall = 100 Index Premiums & Losses Are Calculated On Individual Grid Indicies

Grid ID Selection Don’t spend lot of time… only affects a very few. This 50 acres could be split any way the grower would like between grid 1 or 2. He could also divide it up by grazing or haying land, in either grid 1 or 2.

Grid ID Selection Don’t spend lot of time… only affects a very few. Most fall into the “C” situation. Mention “B” as well. The grower in this example could have put 25 acres in Grid 1 and 125 acres in Grid 2. If you cross the grid line, you can allocate any way the grower would like. Pretty much allocate your land any way you want…..

PRF Coverage Levels Range From 70% – 90% Coverage Levels Are Also Known As The “Trigger Level” When Index Values Fall below The Coverage Level An Indemnity Will Be Triggered. RMA Offers Several Different Subsidy Levels

You can’t insure any single month twice Year round coverage example STEP 3 – Spreading Coverage Over The Year You can’t insure any single month twice At least 2 intervals must be chosen and the maximum amount placed in any interval ranges from 50%-70% depending on the state Each Interval Acts Like a Mini Insurance Period…Experience in One Interval Does Not Effect Another Year round coverage example

Why should you hire a Silveus Rangeland Specialist? Other Agents Formally voices producer concerns to the RMA to effect positive change PRF is still in a Pilot phase don’t loose out by being uninformed or misinformed RangeCalc, proprietary decision tool Advice, to dial in the best program for your operation. Provide Paperwork to sign you up for the program Q - Why isn't your agent offering this? A - Perhaps they have better uses for your money? We Provide the best value for your dollar.

Conclusion The most important point! Sign up deadline for 2016 Crop year is 11/15/2015 Acreage reporting = November 15, 2015 Premiums are due September 1st the following year if not paid by indemnity first Map or boundaries of rangeland are needed to provide a recommendation The most important point! If you consider Pasture Rangeland and Forage Insurance you need to treat it like a program. Adjust the cost to a point where it fits in your budget…it will work over time!

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