NAU Country News

2020 Pasture, Rangeland, Forage Modifications

PRF_webThe Risk Management Agency (RMA) has released changes to the Pasture, Rangeland, and Forage (PRF) Rainfall Index Plan of Insurance for the 2020 crop year via PM-19-049 on August 30, 2019. At NAU Country Insurance Company, it is important to us that you are aware of the changes. A summary of the 2020 changes are shown below, in addition to resources on quoting, application packets, historical indices, reporting features, processing, and so much more through our systems.

  • Updates to the 2020 Crop Provisions, Basic Provisions, and Insurance Standards Handbook
    • Beginning/Veteran Farmer language has been added to the PRF policy, additional changes from the 2018 Farm Bill, and minor editorial edits
  • Point of Reference
    • Point of Reference maps printed from the RMA website are no longer needed with the Application. Approved Insurance Providers (AIPs) can use their own mapping software to provide the Point of Reference, which is now required on the PRF acreage report and must include longitude and latitude coordinates.We will provide more details on our process for incorporating this change in the coming weeks
  • Acreage Crossing State Lines
    • New language in the policy that states contiguous acreage crossing state lines must be insured in the state where the majority of the insured acres are located, or, separated and insured in the respective states with two points of reference
  • Acceptable Verifiable Records of Insurable Interest in Livestock
    • For the Intended Use of Grazing, insurable interest in the crop is based on the interest in the livestock and not the land
    • Insureds must maintain acceptable verifiable records showing their insurable interest of the livestock in the state for three years after the end of the crop year
    • If requested, those records must be provided and failure to do so will result in no indemnity being due for the crop year in which such failure occurs, and premium is still owed
    • See Section 8, (a) in the crop provisions for what RMA deems acceptable verifiable records
  • Native Sod (NS) Requirements added
    • Applicable in the Native Sod states of IA, MN, MT, NE, ND and SD, on native sod acreage tilled after December 20, 2018
    • NS acreage will have liability based on a 65% Protection Factor and a premium subsidy 50 percentage points less than would otherwise be provided
    • These “penalties” are applicable during four cumulative crop years of insurance within the first ten crop years after initial tillage on native sod acreage (2018 Farm Bill rules)
    • NS must be tilled before these provisions apply, so if insuring existing NS acreage as Grazing under PRF, there is no impact.If the insured tills NS acreage and then plants back to a perennial grass/forage and insures those acres under PRF, the NS rules come into play
  • PRF Leases and Determining Share
    • RMA is putting a renewed emphasis on PRF leases and determining share, partly due to their recent PRF Program Review
    • Added language in the Handbook clarifying share determination and examples of written documentation of share, including, but not limited to:
      • Lease
      • Agreement outlining insured interest in insured crop
    • Clarified that an FSA-578 is NOT acceptable documentation for determining shares
    • New Lease Certification Form approved for use by AIPs, but does not replace the use of an actual lease

NAU Country is busy updating our forms and systems while working with RMA on all the new requirements. We will continue to keep you updated as we learn of new changes. As always, our Marketing Representatives and Underwriters are always able to assist with your questions.

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