2006 Beef Business Bulletin Stories Archive
Pilot Test for Insurance Programs
USDA’s Risk Management Agency (RMA) has approved two pilot programs for pasture, rangeland and forage. These programs are based on vegetation greenness and rainfall indices. The new insurance products, the Rainfall and the Vegetation index insurance program, are offered by RMA will be available through approved insurance providers by late August.
The Rainfall index insurance program will be pilot tested in 220 counties in Colorado, Idaho, Pennsylvania, South Carolina, North Dakota and Texas, and is based on rainfall indices as a means to measure expected production losses. The Vegetation index insurance program will be pilot tested in 110 counties in Colorado, Oklahoma, Oregon, Pennsylvania, South Carolina and South Dakota and is based on satellite imagery that determines the productivity of the acreage as a means to measure expected production losses. Together, these pilot programs can provide coverage on approximately 160 million of the 640 million acres of grazing and hay land in the United States.
Both insurance products are designed to allow flexibility for the producer. Producers don’t have to insure all their acres for the entire crop year, but may insure only those acres that are important to their grazing program or hay operation.
USDA’s Risk Management Agency (RMA) has approved two pilot programs for pasture, rangeland and forage. These programs are based on vegetation greenness and rainfall indices. The new insurance products, the Rainfall and the Vegetation index insurance program, are offered by RMA will be available through approved insurance providers by late August.
The Rainfall index insurance program will be pilot tested in 220 counties in Colorado, Idaho, Pennsylvania, South Carolina, North Dakota and Texas, and is based on rainfall indices as a means to measure expected production losses. The Vegetation index insurance program will be pilot tested in 110 counties in Colorado, Oklahoma, Oregon, Pennsylvania, South Carolina and South Dakota and is based on satellite imagery that determines the productivity of the acreage as a means to measure expected production losses. Together, these pilot programs can provide coverage on approximately 160 million of the 640 million acres of grazing and hay land in the United States.
Both insurance products are designed to allow flexibility for the producer. Producers don’t have to insure all their acres for the entire crop year, but may insure only those acres that are important to their grazing program or hay operation.
The sales closing date is Nov. 30. More information is available on the RMA Web site at: http://www.rma.usda.gov/policies/pasture rangeforage/ or on NCBA’s drought Web site at http://hill.beef.org/drought.