NEW YORK'S
Pasture, Rangeland, Forage Insurance

For farmers and ranchers in New York, managing the risks associated with pasture, rangeland, and forage production is critical to sustaining a profitable operation. Weather variability, especially drought, can severely impact forage availability, leading to increased costs and reduced livestock productivity. Fortunately, the Pasture, Rangeland, and Forage (PRF) Insurance program offers a valuable safety net tailored to these unique agricultural challenges. This article explores everything you need to know about PRF insurance in New York, including its benefits, recent expansions, and how it can help protect your land and livelihood.

Understanding the growing importance of PRF insurance is essential. In fact, forage crops accounted for 40% of the total insured acres under the Federal Crop Insurance Program in 2021, a significant jump from just 16% in 2016. This surge reflects the increasing recognition of PRF insurance as a cornerstone of risk management in forage-dependent agriculture.

Pasture, Rangeland, and Forage insurance is a federally backed program designed to protect producers against forage losses caused primarily by insufficient precipitation. Unlike traditional crop insurance that insures specific crops, PRF insurance covers the acreage used for grazing or forage production, which is vital for livestock operations.

The program is unique because it uses a rainfall index rather than actual yield data to determine losses. This index-based approach simplifies the claims process and reduces the risk of moral hazard, as payouts are triggered by weather data rather than subjective assessments of pasture conditions.

According to the Risk Management Agency of the USDA, PRF insurance is specifically designed to help producers manage the risk of forage loss due to drought, which can otherwise force costly purchases of supplemental feed or reduce herd sizes.

The PRF insurance program operates on a calendar year basis, allowing producers to select specific coverage periods that align with their grazing practices. This flexibility is crucial, as it enables farmers and ranchers to tailor their insurance to the unique climatic conditions of their region and the specific needs of their livestock. Additionally, the program offers various coverage levels, allowing producers to choose the level of protection that best suits their financial situation and risk tolerance.

Furthermore, PRF insurance can play a significant role in promoting sustainable agricultural practices. By providing a safety net for livestock producers, it encourages them to maintain their herds even during periods of drought, rather than resorting to drastic measures such as selling off animals or overgrazing their pastures. This stability not only benefits individual producers but also contributes to the overall health of rural economies and ecosystems, as it helps maintain the balance between livestock production and land conservation.

In New York, PRF insurance covers pasture, rangeland, and forage acreage that producers use for grazing or hay production. The program calculates precipitation levels over specified periods and compares them to historical averages. If rainfall falls below a predetermined threshold, the policyholder receives a payout proportional to the shortfall.

Coverage levels can be customized, allowing producers to choose protection that fits their risk tolerance and financial situation. This flexibility is particularly beneficial in New York, where weather patterns can vary widely across regions and seasons. For instance, the western part of the state may experience heavier rainfall than the eastern regions, which can significantly impact the availability of forage. Consequently, producers can tailor their policies to ensure they are adequately protected against the specific climatic challenges they face.

Since pasture, rangeland, and forage cover a significant portion of agricultural land—approximately 55% of U.S. land, or nearly 650 million acres nationwide—program participation is crucial for many producers. While New York’s acreage is smaller, the program’s expansion and increased adoption reflect its growing relevance. The Eden Agency reports that PRF insurance has become one of the largest commodities insured by federal programs, with 61,000 policies issued in 2023 and premiums totaling $1.35 billion. This trend indicates a heightened awareness among farmers about the importance of risk management in safeguarding their livelihoods against unpredictable weather events.

Recent Expansion to New Regions

One of the most notable recent developments is the USDA’s decision to expand PRF insurance to include Hawaii starting in 2025, signaling the program’s adaptability to diverse climates and geographies. While this expansion does not directly affect New York, it underscores the USDA’s commitment to broadening coverage options for forage producers nationwide, which may lead to further enhancements in the program’s offerings in New York as well. The inclusion of Hawaii, with its unique tropical climate and distinct agricultural practices, may provide valuable insights that can be applied to improve PRF insurance in other states, including New York.

Moreover, the growing interest in sustainable agricultural practices has led to an increased focus on insurance programs that support environmental stewardship. Producers in New York are increasingly recognizing the importance of maintaining healthy pasture and forage systems, not only for their economic viability but also for the ecological benefits they provide. As a result, PRF insurance may evolve to incorporate additional incentives for practices that promote soil health and biodiversity, further aligning with the goals of sustainable agriculture. For more details on this expansion, visit the Risk Management Agency announcement.

PRF insurance offers multiple advantages that make it an attractive option for New York farmers and ranchers:

1. Financial Protection Against Drought

Drought is a significant risk for forage producers, often leading to reduced pasture productivity and increased costs for supplemental feed. PRF insurance provides timely financial assistance when rainfall is insufficient, helping producers maintain herd sizes and avoid distress sales. This financial cushion allows farmers to focus on long-term strategies for sustainability rather than short-term survival, enabling them to invest in better farming practices and technologies that can enhance productivity in the future.

2. Simplified Claims Process

Because PRF insurance relies on objective weather data rather than on-site inspections or yield reports, claims are processed quickly and transparently. This reduces administrative burdens and uncertainty for producers. The efficiency of the claims process allows farmers to receive funds when they need them most, ensuring that they can make timely decisions about resource allocation and management. Furthermore, the straightforward nature of the claims process encourages more producers to participate, thereby broadening the safety net for the agricultural community.

3. Positive Impact on Land Values

A 2016 study published in the Agricultural and Resource Economics Review found that the introduction of PRF insurance was associated with at least a 4% increase in pastureland values. This suggests that having insurance coverage can enhance the economic stability and attractiveness of pastureland investments. As land values rise, producers may find it easier to secure financing for expansion or improvements, further contributing to the overall health of the agricultural sector in New York.

4. Risk Reduction for Feed Costs

A 2023 study by Utah State University concluded that PRF insurance effectively helps ranchers reduce the risk of having to purchase additional feed during dry periods. This risk mitigation can improve overall financial planning and operational resilience. By stabilizing feed costs, producers can allocate resources more efficiently, investing in other critical areas such as herd health or technological advancements. Additionally, the predictability that comes with PRF insurance allows ranchers to make informed decisions about breeding and herd management, ultimately leading to a more sustainable farming operation.

PRF insurance is particularly beneficial for producers who rely heavily on pasture and forage for livestock grazing or hay production. This includes cattle ranchers, sheep farmers, and dairy operations that depend on consistent forage availability. The unpredictability of weather patterns can severely impact the quality and quantity of forage, making it essential for these producers to have a safety net in place. By securing PRF insurance, they can mitigate the financial risks associated with insufficient pasture growth due to adverse weather conditions.

Producers with large acreage dedicated to pasture and rangeland will find the program especially valuable, as it covers losses over broad areas rather than individual fields. This feature allows for a more comprehensive approach to risk management, as it acknowledges the interconnectedness of weather impacts across extensive farming operations. Additionally, those operating in regions prone to drought or erratic rainfall patterns should strongly consider PRF insurance as part of their risk management strategy. The program can provide peace of mind, knowing that they have a financial cushion during challenging seasons when forage production may fall short.

It is also worth noting that participation in PRF insurance has grown significantly in recent years. As noted by Eden Agency, Inc., PRF is now one of the largest commodities insured by a federal program, reflecting its widespread acceptance and utility. This growth can be attributed to increasing awareness among producers about the benefits of risk management tools, as well as the program's adaptability to various farming practices. Furthermore, educational initiatives and outreach programs have played a crucial role in informing farmers about how PRF insurance can be tailored to their specific needs, enhancing its appeal across diverse agricultural landscapes.

Moreover, the financial implications of PRF insurance extend beyond immediate losses. By stabilizing income during adverse conditions, producers can make more informed decisions regarding investments in their operations, whether that means upgrading equipment, expanding their herds, or diversifying their crops. This long-term perspective is vital in an industry where fluctuations in weather and market conditions can create uncertainty. As more producers recognize the multifaceted benefits of PRF insurance, its role in fostering a resilient agricultural sector in New York becomes increasingly significant.

Getting started with PRF insurance involves several key steps:                   

1. Assess Your Forage Acreage

Determine the total acreage of pasture, rangeland, and forage you manage. Accurate acreage reporting is essential for obtaining appropriate coverage. Consider not only the total area but also the quality of the forage, as different types may have varying levels of productivity. Understanding the specific characteristics of your land can help in making informed decisions about the level of coverage needed.

2. Contact a Crop Insurance Agent

Work with a licensed crop insurance agent who understands PRF insurance and New York’s specific conditions. They can help evaluate your risk, explain coverage options, and assist with policy enrollment. A knowledgeable agent can also provide insights into local weather patterns and historical rainfall data, which are crucial for selecting the right coverage. Building a strong relationship with your agent can lead to better support and guidance throughout the insurance process.

3. Choose Coverage Levels

Select the coverage level that best fits your operation’s risk tolerance and financial goals. Coverage can range from 70% to 90% of your expected forage production based on rainfall indices. It's important to analyze your past production records and consider potential future scenarios, including extreme weather events, to make an informed choice. Additionally, you may want to explore supplemental coverage options that can further protect your investment against unforeseen circumstances.

4. Enroll Before Deadlines

Enrollment periods vary, so it is important to apply before the sales closing date to ensure coverage for the upcoming season. Keep an eye on important dates and consider setting reminders to avoid missing deadlines. Staying proactive in your enrollment process can help you secure the best possible terms and conditions for your policy, ensuring that you are adequately covered when the growing season begins.

Moreover, it's beneficial to stay informed about any changes in legislation or policy that may affect PRF insurance. The agricultural landscape is constantly evolving, and being aware of new developments can help you make better decisions regarding your insurance needs. Engaging with local agricultural organizations or attending workshops can provide valuable information and networking opportunities, allowing you to connect with other farmers who may share their experiences and insights regarding PRF insurance.

Forage production is a vital component of New York’s agricultural landscape, supporting livestock operations across the state. The Pasture, Rangeland, and Forage insurance program offers a practical and effective way to manage the inherent risks of forage loss, particularly those related to drought and unpredictable weather.

With its growing popularity and proven benefits—including increased land values and reduced feed cost risks—PRF insurance is an essential tool for New York producers seeking stability and peace of mind. Whether you are a seasoned rancher or a new forage producer, exploring PRF insurance options can help safeguard your operation’s future.

To learn more about how PRF insurance can benefit your farm or ranch, consider consulting resources like the Eden Agency or the USDA’s Risk Management Agency.