Typically in Maine hay and forage are viewed as relatively “low-risk” crops but lack of rainfall this year resulting in poor hay yields and slow pasture regrowth leaves many wondering what could be done to manage drought in the future. One possible solution may be the Pasture, Rangeland, Forage (PRF) Pilot crop insurance program. The PRF is a fairly new insurance option for Maine farmers, providing protection of pasture, hay, and hayland against a single peril, lack of precipitation.
Unlike other types of crop insurance, the PRF program is not based on a farmer’s historical crop yields. Rather the PRF program uses a rainfall index from the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center as a proxy for the farmers’ production data. The PRF program is an area-based policy, meaning losses occur when the reported rainfall for a 2-month interval over the entire area (12 square mile grid) is below the 50 – year historical rainfall data. There is no claim paperwork to file and if an indemnity is owed, payments are mailed automatically. Farmers must submit an annual acreage report including intended use (pasture or hay) and the Farm Service Agency: Farm Number(s), Tract Number(s), and Field Number(s); and current Conservation Compliance (Form AD-1026) to their crop insurance agent. The PRF premium cost is federally subsidized from 51 to 59%.
PRF policies are purchased through private crop insurance agents. The enrollment deadline is November 15, 2016 for the 2017 insurance year.
Source:umaine.edu