CALF_News_Oct_Nov_2018

43 CALF News • October | November 2018 • www.calfnews.net Vic Morrison outlines how pasture, rangeland and forage insurance can help hedge against dry weather. LEFT: This mighty fine mini trailer was among many items up for bid at the OCA silent auction. OKLAHOMA CATTLEMEN Continued from page 37 Will Shelby is congratulated by OCA President Weston Given for receiving the Guy Shull Scholarship Award. In the program, RMA states that producers must choose at least two, two-month periods when precipita- tion is important for forage growth for their operation. These periods are called index intervals. RMA uses data from the National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC) to calculate normal precipitation and deviations from normal precipitation. Morrison said individual PRF policies are for land within specific grids, which are typically 17x17 square miles. Several weather reporting stations in an area in or near the grid are used to determine the average rainfall pattern for the grid. “It’s not perfect, but it’s pretty dang close,” he said.“You compare historical data to what actually happened. “PRF is available for about 55 percent of U.S. land covered by crops that suffer from a lack of rainfall. If the average rain is below 90 percent in the two consecu- tive months you select, you can receive a payment.” Morrison said there are multiple coverage levels, from 70 percent to 90 percent. Coverage can be determined depending on the productivity level of the forage crop or grazing land. On the maximum coverage level of 90 percent, a federal government subsidy pays for 51 percent of the premium cov- erage. At 70 percent, 59 percent of the premium is paid by the subsidy. Payment for the policy is not required until the following September. RMA states that when the precipitation falls below aver- age for the index interval, it triggers a loss payment to all ranchers who have signed up for the program in grids that are covered under this interval. “Producers do not need to submit a loss claim or notify their agents,” the agency states. “RMA calculates any loss, and your insurance company pro- cesses any indemnity due.” Morrison said that if rainfall is short and a government payment is due to a producer, it is usually made within 45-60 days. “This Nov. 15 is the final day to sign up for PRF coverage for 2019,” he said. “The crop year begins Jan. 1 and ends Dec. 31. The program just makes sense. If you look at the 10-year history, it has you way on the positive side. If you need some supplemental income to offset the cost of hay in a drought, this is a good program.” Morrison said he would like to see more producers participate in the PRF and other RMA programs.“In Okla- homa, only 10 percent to 15 percent use PRF,” he said.“An even lower margin use LRP insurance. It’s not a perfect system, but it’s the best we have.” CattleFax General Manager Duane Lenz gave an outlook presentation for the remainder of this year and into 2019 (see the CALF News website www.calfnews.net for his full observa- tions). He noted that price volatility, caused by large cattle supplies, drought, trade wars and other factors, put pro- ducer and feeder prices at risk. “If you try to pick the highs in this market, it’s going to be a long, cold winter,” Lenz said, stressing that price risk man- agement is needed to cover against major losses or even generate a profit. Guy Shull Scholarship Award OCA President Weston Givens of Arnett had the honor or presenting the annual Guy Shull Scholarship Award to promote agricultural education to Will Shelby of Madill. The award is funded by the Okla- homa Cattlemen’s Foundation. The foundation supports beef cattle edu- cational programs, research projects in cooperation with Oklahoma State University, educational scholarships for Oklahoma’s 4-H and FFA youth and the preservation of the Oklahoma beef cattle industry and its traditions. The convention included a report by Heather Buckmaster, executive direc- tor of the Oklahoma Beef Council. She discussed the recently revised rollout of the highly successful Beef, It’s What’s for Dinner program. In the first six months, the rebranding attracted about 6 million visitors to the https://www.beefitswhatsfordinner.com website. There has been a 20-percent increase in new users of the site and its videos have had about 2.5 million views. Not a bad result for the use of Beef Checkoff dollars. 