What’s Changing for PRF Insurance in 2027?

For livestock and forage producers, a lack of rainfall can quickly impact pasture conditions, forage production and an operation’s bottom line. Pasture, Rangeland and Forage (PRF) insurance is designed to help protect against the financial impact of below-normal precipitation, and for producers who haven’t considered PRF before, the 2027 crop year may be a good time to learn how it works. Several important program updates are taking effect, including a new rainfall data source and changes affecting grazing acres and coverage intervals.

Here’s a look at some of the key updates.

A New Source for Rainfall Data

One of the biggest changes is how rainfall data used by PRF and other Rainfall Index insurance programs is sourced.

The USDA Risk Management Agency (RMA) is transitioning from the National Oceanic and Atmospheric Administration’s (NOAA) Climate Prediction Center (CPC) to NOAA’s National Centers for Environmental Information (NCEI). The transition for PRF took effect August 31, 2026.

While the source of the data is changing, the geographic grids used to measure rainfall and the overall structure of the program are not. RMA also reports that historical comparisons showed overall loss ratios were nearly identical using the new data source.

For producers, one of the biggest benefits may be greater transparency. NCEI rainfall data is available in accessible formats such as Microsoft Excel, making it easier for producers and their insurance agents to review the information used to calculate Rainfall Index values. RMA also anticipates the change could help final grid index values and indemnity payments be delivered faster.

New Grazing Requirements for PRF

Beginning with the 2027 crop year, PRF policies will include a new requirement for acres insured for grazing.

To insure acreage under the grazing intended use, the producer must have an insurable interest in enough livestock to equal at least 25% of the average stocking rate for the insured acres.

Stocking rate records will also need to be maintained for three years after the end of the crop year. RMA has added provisions addressing stocking rates and the documentation necessary to support them.

For producers using PRF to protect grazing acres, maintaining accurate livestock and stocking records will become an increasingly important part of their insurance documentation.

January–February Interval Limited to 25%

Another significant change involves how producers allocate coverage across PRF's two-month intervals. Beginning with the 2027 crop year, the percentage of value allocated to the January–February interval will be limited to 25%.

Because interval selection determines when rainfall shortages can trigger potential indemnities, producers may want to revisit how their coverage is distributed throughout the year rather than simply carrying forward previous selections.

Rainfall Index Lease Requirements

Producers insuring leased acreage under PRF should also be aware of lease documentation requirements. For the 2027 crop year, leases or Lease Certification Forms (LCFs) must be signed, effective for the crop year and submitted by the December 1 acreage reporting date.

For multi-year or continuous leases, documentation generally does not need to be resubmitted each year while the lease remains in effect. However, if a lease expires or changes and a new lease is established, a new lease or LCF should be signed and submitted.

Producers with leased acreage should work with their insurance agent to make sure the appropriate documentation is in place before the December 1 deadline.

What Do These Changes Mean for Your Operation?

PRF insurance remains a tool designed to help livestock and forage producers manage the financial impact of below-normal precipitation. Whether you already have PRF coverage or are considering it for the first time, the 2027 updates make it a good time to review your options.

At First State Insurance Agency, our team can help you understand PRF, navigate the latest changes and determine how coverage may fit into your operation’s risk management strategy.