AMARILLO – Livestock and hay producers have the ability to buy insurance through the new Pasture, Range and Forage Insurance risk policy offered in the High Plains region, said DeDe Jones, Texas A&M AgriLife Extension Service risk management specialist.
The 2013 sign-up and acreage reporting deadline for this program is Nov. 15, and premiums are due by July 1, Jones said.
“In the face of continued dry conditions, insurance becomes a critical component in producers’ risk management portfolios,” she said.
Payment is not determined by individual damages, but rather area losses based on a grid system, Jones explained. Producers can select any portion of acres to insure, but they must also choose a minimum of two two-month intervals, or a maximum of six two-month intervals per year.
Coverage levels between 70 and 90 percent are available, she said. Once coverage is selected, the producer chooses a productivity factor between 60 percent and 150 percent. Productivity factor is a percentage of the established county base value for forage.
The base value is a standard rate published by the Risk Management Agency for each county. It is calculated based on the estimated per-acre cost of grazing, Jones said. For example, Hansford County’s value is $8.11.
She said Texas uses a rainfall index to determine the insurance coverage. The rainfall index utilizes National Oceanic and Atmospheric Climate Prediction Center data and a 12-by-12 mile grid system.
“Indemnities are calculated based on the deviation from normal precipitation within an area for a specific period selected,” Jones said.
A decision-support tool to help producers determine coverage levels and intervals can be found at: http://agforceusa.com/rma/ri/prf/dst .
For more information about the insurance and how it fits into a risk management plan, contact Jones at 806-677-5600 or firstname.lastname@example.org .