Is pasture insurance right for
your farm? The answer could be yes, no or maybe.
University of Missouri Extension recently launched an
online tool that can help farmers decide if purchasing pasture, range and
forage (PRF) insurance makes sense for their operation.
MU Extension agricultural economist Ray Massey says that
unlike most crop insurance, PRF is based on rainfall rather than yield.
“It is hard to understand what the yield is on pasture,”
Massey says. “You put cows out there and you take cows off. You don’t normally
take off grass unless you’re haying it.”
MU’s online tool provides the same daily estimates from the
National Weather Service that the USDA Risk Management Agency uses to determine
accumulated rainfall over a two-month period. However, it also lets producers
break down rainfall by day and amount, while RMA only presents a monthly percentage
index. Massey says daily information will help farmers see the
correlation between what the RMA is paying insurance on and what is happening
on their farm.
NWS rainfall estimates are divided
among grid squares measuring approximately 15 miles per side. When rainfall is
below the insured level in a square, an indemnity will be paid based on how
much insurance coverage was purchased for that month for land within that
square.
Because rainfall can vary greatly within a square, the NWS
estimate might not match the amount of rainfall an individual farmer receives.
“We’re hoping farmers will keep track throughout the
growing season and come to understand how the insurance works,” Massey says.
“So on Nov. 15, 2014, when farmers can sign up for 2015 insurance, they will be
able to make a decision on whether or not to purchase PRF.”
To access the PRF module, sign up
at http://agebb.missouri.edu/horizonpoint/. You
will need to provide an email address, street address, and the latitude and
longitude of your farm. Complete instructions and additional information is at http://crops.missouri.edu/insurance/prfinsurance.htm.
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