Pasture, Rangeland, Forage (PRF) is based on insuring a percentage of the average rainfall in your area.
Rainfall coverage is available for up to six, two month periods throughout the year. We calculate and pay claims within 50 days of the end of each two-month period. This immediate relief helps cover increasing feed costs throughout the year.
The premium and potential claims of each two month period are calculated and maintained separately. In each two-month period, we separately calculate and maintain the premium and the potential claims. For example, an 8” rain in August has no impact on the other 10 months of the year.
Because of government subsidies, it generally requires only ONE two-month period receiving 40% of average rainfall to cover the premium for the ENTIRE year.
You can easily adjust premium and coverage to meet your needs. Ranchers may insure between 70-90% of average rainfall at 60-150% of a predetermined value of rain on grazing land or hay land in your area.
The value of rain on hay land (perennial grasses that could be baled) can be valued at roughly 12X that of normal grazing land.
It’s simple. There are no record keeping or reporting requirements. Insurers automatically calculate and pay claims once the National Weather Service finalizes the actual rainfall for the previous two month period.
There are no gross income or payment limits.
Pasture, Rangeland, Forage (PRF)
Insurers designed this program and provide insurance coverage on pasture, rangeland, or forage acres. The PRF program utilizes a rainfall index to determine precipitation for coverage purposes, and does not measure production or loss of products themselves.
The Pasture, Rangeland, and Forage insurance was designed to help protect a producer’s operation from the risks of forage loss due to the lack of precipitation.
PRF is available in the 48 contiguous states with the exception of a few grids that cross international borders.
Coverage and Claims
Coverage is based on a producer’s selection of coverage level, index intervals, and productivity factor. The index interval represents a two-month period, and the period selected should be the one when precipitation is most important to a producer’s operation. Policyholders can select a coverage level from 70 to 90 percent. The rainfall index does not measure direct production or loss. The producer insures a rainfall index that they expect to estimate production.
We use NOAA CPC data for their chosen grid(s) and index intervals to determine insurance payments.
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