Deadline for Pasture, Rangeland and Forage Insurance is Nov. 30, 2007

By Ron Haugen, Farm Economist

NDSU Extension Service

The USDA’s Risk Management Agency has expanded the pasture, rangeland and forage rainfall index (PRF) insurance program for the next two years.

Twenty-four selected western counties in North Dakota are eligible for coverage. They are: Adams, Billings, Bowman, Burke, Burleigh, Divide, Dunn, Emmons, Golden Valley, Grant, Hettinger, Logan, McIntosh, McKenzie, McLean, Mercer, Morton, Mountrail, Oliver, Sioux, Slope, Stark, Williams and Ward counties.

PRF insurance is a group risk policy that covers livestock grazing and forage land. It is single- peril coverage (lack of rain). It protects livestock producers from grazing or hay production losses. The program is based on rainfall indices for various areas. The rainfall index is based on the National Oceanic and Atmospheric Administration (NOAA) data and uses approximately 12- mile by 12-mile grids. Insurance indemnity payments are based on a deviation from normal precipitation within the grid area.

The product was designed to allow maximum flexibility for the producer. Producers are not required to insure all their acres, but cannot exceed the total number of grazing or haying acres they operate. A productivity factor of 60 percent to 150 percent is used to represent the capacity of the land. Coverage levels of 70 percent to 90 percent are chosen. Producers also must select two-month time intervals for coverage.

The sales closing date for PRF insurance is Nov. 30, 2007. Producers with pasture and forage in the selected counties are encouraged to contract an insurance agent for more information and to sign up. Information can be found on the RMA Web site at http://www.rma.usda.gov/policies/pasturerangeforage/.

NDSU Agriculture Communication