Storm Clouds on the Horizon for Pasture, Rangeland & Forage Insurance Program
(OCTOBER 30) – There are storm clouds on the horizon for livestock producers who utilize USDA’s Risk Management Agency’s (RMA) Pasture, Rangeland and Forage insurance program (PRF), and USCA is asking its members to submit comments on proposed changes ahead of the December 21 deadline.
RMA began offering PRF in 2007. Since that time, the program has expanded nationwide and been successful in providing a valuable risk management tool to livestock producers and forage growers across the country. Without input from the industry PRF is intended to serve, RMA commissioned a review of PRF from a third-party contractor with no experience in rangelands or livestock. Despite some favorable actuarial reviews from the contractor, RMA’s intent is to make substantial policy changes to PRF beginning in 2022 which would cause PRF to cease functioning as intended.
For producers who already utilize PRF, their Coverage Level, Productivity Factor, and Interval selection –among other things – would be altered. RMA suggests disallowing coverage during winter months along with utilizing four-month Intervals, changes which would eliminate PRF’s usefulness as a risk management tool.
These recommendations would make PRF an ineffective program were they to be implemented as suggested in 2022. Long-term, it is imperative the industry has a seat at the table in developing risk management tools. In the short-term however, these harmful adjustments are likely to be implemented unless RMA is flooded with producer and association comments.
–U.S. Cattlemen’s Association
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