Wednesday, May 04, 2016

Managing Drought Risk on the Ranch

Federal Crop Insurance Options

RMA Pasture Rangeland Forage Insurance

Is this a good risk management option for me? (pdf)

RMA Pasture Rangeland and Forage Insurance Pilot Areas 2013 and beyondProgram Overview

AREA plan only

  • Losses cover an area called a grid

No individual coverage

  • Does NOT measure actual individual production

Index – based on deviation from normal/historical

No loss adjustments, records, etc.

Timely payments

Does not reward poor management practices

  • Producer cannot influence outcome/losses

Intended Use


  • Established acreage of perennial forage
  • Intended for grazing by livestock
  • Acreage must be suitable for grazing


  • Established acreage of perennial forage
  • Intended for haying
  • Acreage must be suitable for haying

Program Overview

Not required to insure 100% of acreage

Forage utilized in the annual grazing or hay cycle can be insured without insuring all acreage

All acres within a property may not be productive, e.g., rocky areas, submerged areas

Provides additional flexibility for the insured to design the coverage to their specific needs

Because the program is an area program, there is no opportunity to ‘move’ production

  • Producer cannot affect outcome/loss

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