For RY2026 and prior crop years, LRP Insurance Standards Handbook contained a table with Price Adjustment Factors for various types. For example, for RY2026, LRP ISH 23.D:
No such table is presented in the 2027 LRP ISH. The table was omitted for ‘tactical’ reasons. RMA aims to publish all handbooks by the contract change date, April 30. At that time, we had a submission in front of the FCIC Board, with expected approval at the May meeting for dynamic PAFs for Predominantly Dairy types. If we had published a table listing 50% for dairy PAFs, that would have biased the implementation of dynamic PAFs towards RY2028, a delay we wished to avoid. This way, with no table with PAFs in the ISH, and with all PAFs published in daily ADM files only, we are able to introduce the dynamic PAFs for dairy types as early as RY2027.
However, not all newly approved categories will have dynamic PAFs. For example, in March, the Board approved the coverage for Unborn Bulls and Heifers as well as Unborn Predominantly Brahman for weight range 6.0 – 9.0 cwt. We have not asked the Board yet for dynamic PAFs for those new offers. So what are their static PAFs?
The table below shows what we plan to include in daily actuarial documents for all static PAFs for RY2027. The principle used for Unborn Bulls and Heifers the same as before – when sex of the animal is not known, the PAF is the simple average of PAFs for Steers and Heifers in the same or similar weight range. Since Weight 2 (6-10 cwt) Steers are at 100% and Heifers are at 90%, the 6-9 cwt Unborn Bulls and Heifers are set at 95%. Unborn Predominantly Brahman with weight range 6-9 cwt is set at 90%, the same as Predominantly Brahman Weight 2.
| Weight Range | Steers | Heifers | Unborn Bulls and Heifers | Predominantly Brahman | Unborn Predominantly Brahman |
| 1.0. – 5.99 cwt | 110% | 100% | 105% | 100% | 100% |
| 6.0 – 10.0 cwt | 100% | 90% | N/A | 90% | N/A |
| 6.0 – 9.0 cwt | N/A | N/A | 95% | N/A | 90% |
For Predominantly Dairy types, PAFs will be dynamic, similar to the approach we used since RY2026 for Unborn Calves. The charts below are from our analysis we initially submitted to the FCIC in early October 2026:
If dynamic PAFs methodology were in force today, these would (approximately) be the PAFs used for sales in June 2026 for each end month (September 2026 through August 2027):
| End Month | Predominantly Dairy Weight 1 / Unborn Dairy 1-5.99 cwt | Predominantly Dairy Weight 2 / Unborn Dairy 6-9.0 cwt |
| Sep, 2026 | 125% | 79% |
| Oct, 2026 | 132% | 76% |
| Nov, 2026 | 133% | 77% |
| Dec, 2026 | 131% | 75% |
| Jan, 2027 | 122% | 75% |
| Feb, 2027 | 125% | 76% |
| Mar, 2027 | 134% | 79% |
| Apr, 2027 | 136% | 81% |
| May, 2027 | 136% | 81% |
| Jun, 2027 | 141% | 79% |
| Jul, 2027 | 126% | 79% |
| Aug, 2027 | 131% | 78% |
If the dynamic PAFs for dairy types prove to be a success, our next step will be to request FCIC approval to apply dynamic PAFs for Unborn Bulls and Heifers, targeting implementation for RY2028. We would love to hear your feedback on that contemplated change!