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

2. 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

3. NEW USDA SUBSIDIZED PROGRAM
ALFALFA GROWERS!!
NEW USDA SUBSIDIZED PROGRAM

4. 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

5. 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

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

7. 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.

8. 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)

9. 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

10. 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.

11. 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…..

15. 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

16. 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

17. 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.

18. 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!

19. Thank You