Nov. 15 deadline looms for range insurance
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 email@example.com.