Recently, various schemes have been devised connecting, directly or indirectly, livestock producers enrolled in USDA’s Pasture, Rangeland, and Forage (PRF) program to investors and/or lending-type entities. While the specifics vary, the livestock producer generally agrees to turn over a portion of their PRF indemnities in return for the investor covering all or part of the PRF premium. A similar emerging scheme offers a low-interest rate to help pay premiums if the client stays with the agent for a period of time. These schemes harm PRF, a program that has kept many ranchers in business during droughts. Producers and agents caught in this scheme could face serious legal repercussions with USDA. USDA has issued guidance on these schemes.
Below is the link to the update posted by RMA:
RMA Frequently Asked Questions Page: