PRF Insurance, also known as Pasture, Rangeland, and Forage Insurance, is a USDA-subsidized insurance program designed to protect ranchers in Nebraska against losses caused by inadequate rainfall and its impacts on forage production. This type of crop insurance can be custom-tailored by Redd Summit Advisors to meet the unique needs of your Nebraska ranching operation.
What is PRF Insurance?
Pasture, Rangeland, and Forage (PRF) insurance is a risk management tool designed for ranchers to protect against the financial losses associated with low rainfall and decreased forage production.
With coverage, Nebraska ranchers will be issued an indemnity or a loss check each time their insured grid receives lower rainfall than their insured coverage level. You can then use this money however you see fit to sustain your operation.
How Does PRF Insurance Work?
PRF Insurance functions by comparing your area’s historical rainfall data to the amount of rainfall your insured grids receive during your insured intervals. If the actual precipitation falls below your covered threshold (70-90% of average), you’ll be issued an indemnity or loss check through your PRF policy to offset your losses.
Is PRF Insurance Worth It?
Given the current state of the Nebraska drought, it’s certainly worth evaluating if PRF insurance is right for your operation. Insured ranchers can enjoy the following:
- Financial Protection: PRF insurance provides financial protection to ranchers by offering coverage for losses in forage production due to drought or other weather-related events.
- Risk Mitigation: It helps mitigate the risk associated with unpredictable weather patterns, ensuring that ranchers have a safety net in place.
- Crop-Specific Coverage: PRF insurance is designed specifically for forage crops, allowing ranchers to protect their valuable hay and forage production.
- Flexible Coverage Levels: ranchers can choose from a range of coverage levels based on their individual needs and risk tolerance.
- Ease of Access: PRF insurance is available through private crop insurance agents, making it easily accessible to ranchers.
What Does PRF Insurance Cover?
PRF insurance coverage is simple. Your policy can insure against lower-than-average precipitation on your acreage listed below:
- Owned acreage
- Leased acreage
- Haying acreage (irrigated or non-irrigated)
- Grazing acreage
- Forestry and BLM leases
Does PRF Insurance Cover Drought?
Pasture, Rangeland, and Forage insurance enables ranchers to secure their operations against lower-than-average precipitation, even outside of drought parameters. It is intended to protect your profit margin from dry conditions without requiring your area to fall within a drought status.
Does PRF Insurance Cover Forage Loss?
While “Forage” is in the name, Pasture, Rangeland, and Forage (PRF) insurance does not cover forage loss directly. What this means is that your losses will not be calculated based on your actual forage yield. Instead, losses are calculated based on the amount of rainfall your insured grid received during your insured interval, compared to the 70-year average.
Does PRF Insurance Cover Rainfall?
Yes, PRF insurance enables ranchers in Nebraska and the rest of the contiguous United States to protect their profit margin from the impact of low rainfall.
How to Get PRF Insurance in Nebraska?
- Contact Redd Summit Advisors at (435) 625-1022 to be put in touch with a local agent
- Complete a 5-minute application
- Lock in your policy for 2024
That’s it! The PRF sign-up process is straightforward, and your Redd Summit agent will custom-tailor your policy to maximize your benefits from the program while meeting your specific needs.
Frequently Asked Questions
1. What is PRF coverage and how does it protect against losses in Nebraska?
PRF coverage, or Pasture, Rangeland, and Forage coverage provides compensation for forage production losses specifically due to lower-than-average rainfall. PRF coverage is based on a rainfall index for a local area, rather than an individual operator's production. It works by issuing an indemnity if the rainfall index falls below the insured rancher’s coverage level.
2. How does the rainfall index model used in PRF insurance work?
The rainfall index used in PRF insurance is calculated by expressing the current year's precipitation as a percentage of the average precipitation. It is measured over an entire grid area, rather than on an individual farm or ranch or at a specific weather station. The National Oceanic and Atmospheric Administration (NOAA) calculates the rainfall index values using daily rainfall measurements from the four closest reporting weather stations to a particular grid area.
3. Can PRF insurance protect against losses caused by factors other than precipitation?
No, PRF coverage only applies to precipitation conditions and does not cover other causes of loss such as fire, heat, hail, frost, freeze, insects, or disease damage. It specifically focuses on compensating for forage production losses due to drought conditions.
4. How can Nebraska producers enroll in the PRF insurance program?
The deadline to enroll in the PRF program is December 1. Speak with a Redd Summit Agent before then to secure your 2024 coverage!
5. What types of land are eligible for PRF coverage in Nebraska?
Any land that you utilize for livestock grazing, whether owned or leased, as well as haying acreage, whether irrigated or non-irrigated can be insured through a PRF policy. Please note, however, that you must own livestock in order to qualify for coverage.
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