from highest to lowest. The number in the middle is the median. In San Angelo the long-term me-
dian rainfall is 20 percent less than the average rainfall. The prudent ranch manager will stock his or her pastures and manage his or her ranch for the median rainfall and insure for the average rainfall. The USDA Risk Management
Agency (RMA) made Pasture, Range and Forage Insurance based on the estimated rainfall in a 12-by-12-mile grid available as a pilot program in selected states in the 2007 crop year. The program insurance is subsi-
dized from 51 to 59 percent of the premium cost, but when rainfall is below the selected coverage level the insured receives 100 percent of the indemnity. This insurance is considered
rather simple because there are no reporting or record-keeping require-
ments for PRFI. After an individual signs up, his or her paperwork is essentially done. Claims are calculated based on a
chosen coverage level and are paid automatically. However, there are many decisions on the front end that can make the program seem complicated.
Four decisions There are 4 basic decisions to
consider, and there are levels within each of the decisions. Acreage Individuals can insure all or part
of their property, but most common- ly the entire property is insured. This is the easiest decision. Coverage level This ranges from 70 to 90 per-
cent of average rainfall. The fi nal grid index must be below the chosen coverage level to trigger a payment.
This also affects the amount of sub- sidy that is provided. RMA pays 59 percent of the premium for the 70 and 75 percent coverage level and 51 percent of the premium for the 90 percent coverage. Protection factor This ranges from 60 to 150 per-
cent and allows individualization based on how productive a property is compared to average property in that county. Index intervals There are 11 2-month intervals.
Two to 6 intervals must be insured with a minimum of 10 percent of the enrolled acreage insured for any chosen interval. This is the most important and the most complicated of the decisions that must be made when taking out PRFI.
Complex but familiar I decided to investigate the con-
Before the Chisholm and Goodnight-Loving Trails, Wortham - San Antonio
was insuring Texas ranchers and cattlemen.
Wortham - San Antonio puts our 150 years of experience behind every policy we write, every acre we insure, and the stock we protect:
• Property and equipment loss or damage • General liability (includes oil & gas and hunting operations on property)
• Business automobiles • Workers’ compensation
• Umbrella/excess liability • Professional liability • Animal mortality • And all your personal insurance needs
For a professional assessment of your insurance needs, please call Burton Barnes, Jr. at (210) 223-9171 or 1-800-779-4677 or visit us online at
www.worthaminsurance.com.
“Since 1852 Wortham - San Antonio has been protecting the interests of cattlemen across Texas and the Southwest. TSCRA proudly provides its endorsement of Wortham - San Antonio as a valued and trusted partner.” Eldon White, Executive Vice President, TSCRA.
WORTHAM - SAN ANTONIO 131 Interpark Blvd. San Antonio, Texas 78216
tscra.org October 2013 The Cattleman 77
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