Pasture, Rangeland, and Forage (PRF) insurance is often mistakenly called “drought insurance.” However, PRF is more accurately described as “rainfall volatility insurance” because it’s not limited to stiff parameters like NAP, LFP, and other disaster programs.
With PRF, your coverage is not restricted to apply only in drought conditions. Instead, PRF insurance triggers an indemnity payment whenever rainfall on your insured land is below the 70-year average during covered intervals to supplement your operations’ financial losses caused by lower-than-normal precipitation.
Using an accurate map of your land and historic rainfall data Redd Summit’s software will generate hundreds of thousands of policy simulations to identify which of your land’s grids and coverage intervals maximize your potential to receive an indemnity payment
Along with a policy through Redd Summit Advisors, you’ll have access to our support throughout the year with monthly statements, weather reports, and exclusive access to an in-house Ag Risk consultant
The team at Redd Summit is comprised of multi-generational ranchers and industry experts who build your policy with over 100 years of combined experience. You will only receive a policy that we’d feel confident using on
our own land
PRF is not drought insurance. Instead, it protects your ranch from losses caused by volatile rainfall by providing indemnity payments when precipitation in your area is lower than the 70-year average.
Indemnity payments are issued automatically when rainfall is lower than average in covered intervals and can be used however the rancher chooses. Some purchase hay to supplement their forage loss, upgrade equipment, pay off debt, or save for the future.
Your premium is not due up-front. The indemnity payment goes towards the premium until the balance is satisfied, after which any additional payments go straight to you with no out-of-pocket costs.
PRF insurance is USDA subsidized, meaning the US federal government pays a portion of your premium.
Disaster programs like LFP and NAP exist to assist agricultural operations during catastrophic weather events, and assistance is provided based only on your perceived need if you meet certain parameters. While PRF is sometimes referred to as “drought insurance”, it is fundamentally different from these disaster programs.
PRF is better described as rainfall volatility insurance. PRF is intended to maintain your profitability by triggering an indemnity payment automatically whenever precipitation is lower than the 70-year average on your rangeland during your coverage interval. This means that you can receive coverage outside of drought periods or other catastrophic weather events, and you’ll never have to file a claim or meet with an adjuster.
Indemnity payments through PRF insurance enable you to supplement any financial losses you can incur through a dry season such as hay purchases and increased irrigation costs.
Your premium is dependent on the amount of land that you’d like covered. However, PRF insurance is USDA-subsidized, which means you are not on the hook for the whole premium balance, as a portion of it is paid for by the US Government. And, because your indemnity payment will go towards your premium until the balance is paid in full, any additional payment goes straight to you with no up-front or out-of-pocket cost.
Livestock grazing is the most common use of rangeland. It is also the main management tool to maintain forage production and soil health.
No, crop insurance through PRF coverage protects you from rainfall volatility, not drought conditions.
The main difference between pasture and rangeland lies in whether or not the grasses grown on the land are domesticated or native to the area. According to the EPA, pasture includes “lands that are primarily used for the production of adapted, domesticated forage plants for livestock”, while rangelands are primarily made up of grasses that are natural and native to the area.
Pasture, Rangeland, and Forage insurance protects your grazing land from losses due to rainfall volatility.
Find out how PRF would perform on your land this year without having to sign up!