Frequently Asked Questions (FAQs)

Yes, RMA offers seven livestock plans and an annual forage insurance plan. Talk to a crop insurance agent to help you decide the option that is right for your operation.

An FSA-578 is NOT acceptable documentation by itself for determining shares. FSA programs and PRF have different rules/criteria for determining who has a share in a crop, and therefore, may not be appropriate for PRF. The FSA-578 may be used in support of or in conjunction with other documentation for determining shares but cannot be used as the only documentation for determining shares.

No, currently participation in the Federal crop insurance program is not a requirement of any current USDA program.

No, crop insurance through PRF coverage protects you from rainfall volatility, not drought conditions.

Yes, which index intervals you insure and how much you insure for each interval is important. It is important to review the historical indices tools for your grid along with past production records to determine if these programs work for your operation and to assess which index intervals correlate well to your production. For example, a producer has an operation in Virginia and has cool season grasses. July and August are normally extremely dry months when the vegetation normally becomes dormant (turns brown). Since July and August are normally dry, this may not be a good period to insure. This Virginia producer may be better served by insuring months earlier in the spring that are important for cool season forage growth and months in the fall that would establish his cool season grasses for fall grazing.RMA strongly encourages you to use our decision support tools to help you make the right decision for your insurance needs. Selecting index intervals is a critical component of these policies and the result of your selections will directly correspond to your satisfaction with the product.

Yes, the intent of the PRF policy is that you own or have an insurable interest in the livestock. In addition, the person with the insurable interest when the crop is grazed is based on the livestock and not the land. If requested, you will be required to provide records that show you have grazed livestock and that you have an insurable interest in the livestock. The type of records to support your interest in livestock inventory include, but are not limited to any one of the following: Livestock inventories from within the state;Sales documents of offspring (can be used to verify on farm livestock inventory);Documentation confirming you have purchased/owned/bred/raised livestock in the state;Documentation of livestock taken in on the gain or for a fee;Documentation that confirms you hauled livestock (in which you have an interest) into the state to graze; orIf natural causes require you to destock your livestock, records demonstrating disposition are acceptable. These records must be maintained for period of three years after the crop year.

• All losses are subject to a $100 deductible.
• Indemnity Calculation: Multiply the number of acres destroyed by the insurance per acre (IPA) shown on the Statement of Insurance (SOI), then subtract the $100 deductible. Once a determination is made, a payment will be issued within 30 days.
• A fire department service charge of $500 may be included.

When the interpolated precipitation falls below average for the index interval, it triggers a loss payment to all producers who have signed up for the program in the grid that are covered under this interval. Producers do not need to submit a loss claim or notify their agents. RMA calculates any loss and your insurance company processes any indemnity due. Losses are calculated based on whether the current year’s precipitation in a grid has deviated from normal compared to the historical normal precipitation in the same grid, for the same period. Losses are not based on a single ranch or a specific weather station in a general area.

A list of insurance agents is available at all USDA service centers or RMA's Agent Locator.

You can invest in cattle futures by creating an account with the futures exchange through your broker and depositing the correct margin. Then you can start trading cattle futures contracts.

Producers must choose at least two, 2-month periods when precipitation is important for forage growth for their operation. These periods are called index intervals. RMA uses NOAA CPC data to calculate normal precipitation and deviations from normal precipitation. RMA uses NOAA precipitation data based on the Optimal Interpolation methodology. Interpolation is based on the idea that things closer together in space are generally more similar than those farther apart and it estimates precipitation for a grid using reporting stations within a search radius around the grid. More information about the technology and how NOAA CPC interpolates weather data to a specific grid can be found on RMA’s PRF web page. Select “Rainfall Index, Pasture, Rangeland, Forage Technology”. It is important to understand that precipitation is interpolated to the grid, not measured within the grid.

The Government on PRF insurance is dependent on your chosen coverage level. 

• 90% coverage has a 51% subsidy
• 85% to 80% coverage has a 55% subsidy
• 75% to 70%  coverage has a 59% subsidy
• Your coverage level refers to the percentage of normal rainfall that you’re PRF policy insures.

‍

The Rainfall Index uses NOAA CPC Daily Precipitation Data that interpolates precipitation to the grid. RMA compares the compiled data for each 2-month interval with the historical precipitation data for the same period that is normally expected in the grid. Additional information on NOAA CPC’s interpolation and quality control process can be found in NOAA CPC’s Conceptual Description Paper.

The biggest difference between PRF insurance and the FSA programs is that PRF insurance is offered as an insurance product, in which the producer is responsible for a premium. 

The FSA disaster programs are aid programs, in which there is no input from the producer. These programs require the producer to meet certain criteria and fill out the necessary paperwork. After doing so, the producer may or may not receive the needed funds.

It is worth noting that the funds from most FSA offices are often issued after the need arises. Indemnities from PRF insurance are often available about 60-90 days after the interval ends.

The precipitation is measured each day based on a 24-hour period determined by the data set utilized by the Rainfall Index programs. Currently, the NOAA CPC data set utilized in the Rainfall Index programs measures precipitation for a 24-hour period based on Coordinated Universal Time (UTC).

PRF insurance is built for the livestock producer, not the landowner. If you own livestock, you can qualify for PRF insurance, whether your insured land is owned or leased.

Hay ground can also qualify for PRF insurance coverage if it is used to harvest forage for livestock – as long as it is not enrolled in a different crop insurance program.

‍

You can complete your PRF insurance sign-up and application process in three easy steps. 

• Contact a Redd Summit Agent by submitting this online form, by calling (435) 625-1022
• Complete a 5-minute application
• Lock in your coverage

Pasture, Rangeland, and Forage (PRF) insurance is often informally referred to as rainfall insurance or drought insurance because ranchers utilize the coverage to protect their profits from the impact of below-average rainfall.

No. The RI-PRF is not “drought insurance” and does not insure against abnormally “high temperatures” or “windy conditions.” While a drought may cause a decline in the index value to the point that an indemnity payment is issued to eligible insured producers, a drought being declared in a state, county or area does not, by itself, trigger an indemnity payment under the RI-PRF.

Cattle futures are CTFC-regulated, exchange trade contracts on the Chicago Mercantile Exchange (CME) that enable ranchers to protect their profit margins from declines in the cattle market by selling their livestock on a contractual basis. This means that a producer can sell their livestock at today’s price for their anticipated weight, but physically transfer ownership months down the line.

The deadline to sign an application for a 2024 PRF insurance policy is December 1, 2023.

Your PRF insurance indemnities will hit your mailbox when: 

‍

• Your PRF insurance premium is paid in full.
• Your insured grid(s) receive less rainfall than your chosen coverage level (70%-90% of the 70-year average) during one of your insured intervals. 

‍Remember: PRF insurance is self-funding. Indemnities are credited to your premium balance first. Once the balance is paid in full, any additional indemnities are issued directly to you.

You can find Live Cattle (LE) prices on the Nasdaq.

Cattle prices fluctuate year to year, but February and March are traditionally the best times to sell calves.

Coverage begins on January 1 and is allocated throughout the calendar year based on the historic rainfall data in your area.

Pasture, Rangeland, and Forage (PRF) is rainfall insurance. It protects your land from rainfall volatility and triggers indemnity payments when rainfall in your area is lower than average.

Livestock grazing is the most common use of rangeland. It is also the main management tool to maintain forage production and soil health.

Pasture, Rangeland, and Forage insurance protects your grazing land from losses due to rainfall volatility.

The main difference between pasture and rangeland lies in whether or not the grasses grown on the land are domesticated or native to the area. According to the EPA, pasture includes “lands that are primarily used for the production of adapted, domesticated forage plants for livestock”, while rangelands are primarily made up of grasses that are natural and native to the area.