The U.S. Cattlemen’s Association (USCA) says there could be 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 insurance 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.
USCA says that 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.
U.S. Cattlemen’s says that these recommendations would make PRF an ineffective program were they to be implemented as suggested in 2022. Long-term they say, 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.
Producers can learn more about the proposed PRF changes, find the link to submit comments and even use an email template created by Ag Risk Advisors by clicking here.
###
USCA/Ag Risk Advisors
