By: Eric Richer, Aaron Wilson, Mike Estadt, Garth Ruff
It is no secret that hay producers and pasture managers in Ohio have experienced lower production in the past two years than the previous several years due to significant drought in parts of the state. Similar to row crop production, weather risk can present significant challenges for our livestock producers who produce their own forages and/or graze livestock. Those producers may consider Pasture, Rangeland, and Forage (PRF) Insurance as part of their risk management strategy. Enrollment in this insurance product closes December 1st each year.
The Basics
PRF is a single-peril (rainfall only) and area-based insurance product. Area-based means that indemnity payments will not be based upon individual producer’s experience, rather, payments will be based upon a grid’s deviation from historically normal rainfall. It covers less than average rainfall levels in a particular grid up to the level of coverage that a farmer selects. Rainfall is measured through the National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC). A producer will have to make several choices including the coverage level of forage production they wish to insure, the rainfall index months to cover, the productivity level of the field or fields they wish to enroll and the number of acres they wish to insure. Continue reading Pasture and Forage Risk Protection? – Enroll by December 1st
