The PRF program uses a rainfall index to determine precipitation – it does not measure actual production or loss of products themselves. The rainfall index uses National Oceanic and Atmospheric Administration Climate Prediction Center data to determine precipitation amounts within an area. The index compares how much precipitation is received versus the long-term average for a specified area and time frame.

Recently, the USDA Risk Management Agency (RMA) had an independent evaluation done of the PRF insurance program to determine its effectiveness as a risk management tool for livestock producers.

The independent evaluation resulted in several recommendations, including:

  • Adjusting the county base value (CBV) productivity range
  • Better targeting of indemnities
  • Focusing PRF on viable forage production areas
  • Focusing coverage on risk-reducing intervals
  • Taking an alternative approach to reducing frequent shallow losses
  • Modifying the CBV

If you would like to read more about the recommendations, they are published in a report now available on the RMA website.

The RMA wants to hear any comments you have about these recommendations by Nov. 5, 2020.

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In addition, these recommendations could also be applied to other rainfall index programs, such as Apiculture and Annual Forage, so the RMA strongly encourages all interested parties to submit comments.

Please submit your comments:

  • By email
  • By mail to: Director, Product Administration and Standards Division, Risk Management Agency, United States Department of Agriculture, P.O. Box 419205, Kansas City, MO 64133-6205

The RMA will carefully review all of your comments and determine what recommendations should be implemented for the 2022 crop year. So it’s very important for the RMA to hear from you.

RMA Administrator Martin Barbre would like to thank the independent evaluators and the producer groups they consulted with to come up with these recommendations. And Barbre strongly encourages you to provide your feedback to the RMA. The RMA is always looking for your input to make decisions and improve risk management products to serve America’s producers better.  end mark

—From a USDA news release