Frequently Asked Questions (FAQs)

The premium on your LRP policy varies depending on your operation. However, the USDA subsidy makes the US Government responsible for a portion of your premium. However, if the market price drops during your endorsement and your indemnities cover the premium in full, any additional payments go straight to you with no up-front or out-of-pocket cost.

LRP insurance covers the cattle market prices, not the cattle themselves. However, there are other insurance products that cover mortality as well.

Endorsements can last anywhere from 13-52 weeks. Producers are able to market their livestock within 60 days of the end of their endorsement period but are not required to actually sell their livestock insured.

Most insurance companies offer payment plans if a premium is owed.

Yes! We just need documentation of the lease agreement.

Sustainable grazing conditions are conditions where both livestock and wildlife can feed without detriment to habitat and soils. These are conditions where average long term forage volatility is reduced through quality management practices.

With Redd Summit's specialty software, you can be assured that your coverage is strategically placed to optimize your policy's performance and maximize its potential benefit to your operation.

That is based on your county values assigned by the USDA. It can vary.

An agent cannot, by law, give a discount on your premium. All premium rates and commission rates are predetermined by the RMA division of the USDA. However, an agent can set your PRF policy up in a way that maximizes your potential for benefit and minimizes your risk.

PRF insurance can be applied to any acreage that you run on, whether owned or leased.

Any indemnity payment received from your PRF insurance policy are yours to use as you see fit. Some ranchers supplement their forage costs, while others purchase replacement heifers or simply contribute to their savings accounts.

No, but an agent can give you an estimate of how often you might owe a premium.

The check that you’ll receive for your indemnity payments come from your insurance provider. However, the money itself comes from the USDA’s subsidy of PRF and is administered by the USDA’s Risk Management Agency (RMA).

Approximately 11x22 mile area used to help identify coverage for PRF purposes. This is what will be considered your “local area” and used for measuring precipitation.

Yes! They are different programs. You can benefit from both at the same time!

Agents are paid a commission based on the premium of your policy.

By offering financial means outside your normal yearly budget when you need the capital most! This helps avoid coming up with needed funds to address situations such as buying forage, or the need to sell livestock or other needed equipment to avoid or cover those unexpected expenditures.

NOAA calculates rainfall data at your four closest rain stations. Data is finalized 60-80 days after the end of a coverage interval. After this, the AIPs apply appropriate indemnity amounts or issue checks if your premium is paid off.

Yes, PRF Insurance can be used along with FSA assistance programs.

PRF is insurance issues payments automatically when you incur a loss due to lower-than-average precipitation. Public disaster programs that provide assistance only based on perceived need. Why not have both?