WHAT IS YIELD PROTECTION?
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YIELD PROTECTION
Imagine the result of a growing season that only gave way to half of the amount of your area’s normal rainfall. Your forage growth is down, but your operating costs have gone up due to your effort to combat the dry spell. This scenario would put many producers in a tough spot and isn’t too far from a reality that nearly all of us in the industry have faced. The question is: how do we obtain protection from lower yields caused by lower rainfall, and what does that yield protection look like for cattle ranchers?
Luckily, the answer is simple. Yield protection is crop insurance, and the rancher’s crop insurance is Pasture, Rangeland, and Forage (PRF) insurance.
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CUSTOMIZED POLICIES
Enjoy insurance policies that are custom-tailored to meet your operation’s unique needs
YEAR-ROUND SUPPORT
Benefit from year-round access to Ag-Industry experts eager to help manage risk on your ranch
Ranching Expertise
Know you’re working with a team of fellow ranchers, who understand your challenges
MAPPING SOFTWARE
Ensure that your PRF policy is built with precision through industry-leading software
100
+
Years
Lean on a team with 100+ years of ranching experience dedicated to your operation’s success.
92
%
RENEWAL
Enjoy the same coverage and support that has led to 92% of ranchers renewing their policies year after year.
9.7
/10
Ranches
Entrust your coverage with a team that has received a satisfaction rating of 9.7/10 from insured producers
50
M
ACRES
Make your ranch a part of the 50 million+ acres currently safeguarded with PRF insurance.
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PRF IS THE RANCHER’S YIELD PROTECTION
The rancher’s crop is forage, which is grown on their pasture and rangeland and then harvested through their livestock. So, how can PRF insurance protect your operation from lower forage yields?
- PRF is based on yearly rainfall data reported through NOAA and the direct correlation between rainfall and forage yield on your land.
- Less rain equals less forage yield, which can increase your operation’s overhead costs, and decrease your ranch’s profitability.
- With PRF coverage you can receive indemnity payments when rainfall in your area is lower than the 70-year average.
- PRF is self-funding, meaning indemnities will go toward your premium until the balance is paid in full, and any additional payment will go straight to you with nothing out of your pocket!
- If you do owe your premium, PRF’s USDA subsidy means the US government is responsible for a portion of your payment; you’re not on the hook for the whole thing!
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MAXIMIZING YOUR YIELD PROTECTION
However, protecting your operation from lower forage yields with PRF insurance is not quite as simple as blanketing your entire ranch with coverage. With Redd Summit Advisors, you can receive a customized policy that allocates your coverage in a way that maximizes your potential benefit from yield protection.
GRID ALLOCATION
RSA allocates your coverage into the highest-performing grids so that you have the highest potential for benefit over the lifetime of your policy.
COVERAGE INTERVAL
Your coverage is customized further by identifying the highest performing intervals to place your coverage to increase your chances of receiving indemnities. With this combination, you can then be assured that the policy that you choose is custom-built to your land with the best grid allocation and coverage interval possible to maximize your potential benefit while minimizing any potential risk to your operation.
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THE BOTTOM LINE
- Yield protection protects agricultural producers from lower-than-expected crop yields.
- Yield protection is crop insurance.
- Ranchers’ crop insurance is PRF insurance.
- PRF insurance is based on rainfall data and provides indemnity payments to the producer when rainfall in their area is below the 70-year average.
- Proper grid allocation and interval selection on your land is the key to a PRF policy that maximizes your potential benefit.
- Redd Summit Advisors uses powerful software to customize your coverage and tailor your policy to suit your operation’s needs.
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HOW TO SIGN UP FOR YIELD PROTECTION THROUGH PRF
Receiving a policy proposal from Redd Summit is actually pretty simple. We just need to know where you operate and how many acres you run on. Contact us or give us a call at 1-800-825-2355. Or, fill out our online form to request a quote.
Even if you are unsure if PRF could benefit your operation, you owe it to yourself and your future success to at least get the numbers and make sure you aren’t leaving money on the table during dry seasons with low forage yield.
100
+
Years
Lean on a team with 100+ years of ranching experience dedicated to your operation’s success.
92
%
RENEWAL
Enjoy the same coverage and support that has led to 92% of ranchers renewing their policies year after year.
9.7
/10
RATING
Entrust your coverage with a team that has received a satisfaction rating of 9.7/10 from insured producers
50
M
ACRES
Make your ranch a part of the 50 million+ acres currently safeguarded with PRF insurance.
Yield Protection
FAQs
Answers to your questions.
Your indemnities first go toward your premium. Once your premium is satisfied, any future indemnities come straight to you.
The Government on PRF insurance is dependent on your chosen coverage level.
- 90% coverage has a 51% subsidy
- 85% to 80% coverage has a 55% subsidy
- 75% to 70% coverage has a 59% subsidy
- Your coverage level refers to the percentage of normal rainfall that you’re PRF policy insures.
The deadline to sign an application for a 2024 PRF insurance policy is December 1, 2023.
We use our unique technology to analyze 70 years of rainfall data on your land. This, combined with our ranching expertise allows us to make a custom PRF policy that will benefit you the most.
If you have cattle, you probably qualify for PRF insurance.
Yes, PRF Insurance can be used along with FSA assistance programs.
Agents are paid a commission based on the premium of your policy.
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.
Get a free PRF policy preview
Find out how PRF would perform on your land this year without having to sign up!
Get a free lrp policy preview
Find out how LRP would perform on your land this year without having to sign up!
WE’D LOVE TO COME SEE YOUR RANCH!
We make regular visits to ranches across the country, we would love to come visit you and show you the benefits of PRF insurance.
Trusted by 800+ ranches & 50 million acres
"PRF Insurance helped maintain our herd size. It even increased a little during dry years."
Dennis W Jones
"PRF through Redd Summit has greatly improved our operation in a short time by balancing cash flow ebbs and flows that were due to dry spells. Redd Summit is great to work with and diligent in answering any questions that we might have."
Jacob Doonan
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