How Pasture, Rangeland, Forage (PRF) Insurance Provides Support in Dry Years

Lack of precipitation is a harsh reality that can significantly impact your livelihood as a farmer or rancher. When the rains don’t come, the financial strain can be overwhelming, threatening your operation and peace of mind. This is where Pasture, Rangeland, Forage (PRF) Insurance steps in as a game-changer, offering a financial safety net so you can keep your head above water when nature throws a curveball.

The Role of PRF Insurance in Low Rainfall Years
Livestock and hay producers know better than anyone that lack of rainfall can reduce forage and pasture yields, making sustaining your livestock and operations difficult. PRF Insurance is designed specifically with you in mind, providing you with a financial buffer during these tough years. Here’s how it helps:

Compensation When Forage is Potentially Reduced: PRF Insurance pays out when the rainfall in your area is below average, based on a Rainfall Index. This means you get compensated when conditions are driest, helping cover losses in forage availability.

Flexibility in Coverage: You can choose your level of coverage, which means you have control over your policy and can tailor it to match the risk level you face.

Supporting Your Cash Flow: With a financial payout from PRF Insurance, you can maintain operations without having to dip into emergency savings or take on additional debt.
Peace of Mind: Knowing you have a safety net during a lack of precipitation allows you to focus more on strategic planning and less on immediate financial concerns.

How Does PRF Insurance Work?
Understanding how PRF Insurance functions is key. Rather than measuring actual forage loss, PRF relies on the Rainfall Index to determine payouts based on historical data and area precipitation levels. Here’s what you need to keep in mind:

Policy Customization: Based on your area’s historical climate, you can choose specific two-month periods—index intervals—when you anticipate needing coverage most.

Payout Calculations: The payout is determined by how much actual precipitation, measured by the NOAA Weather Stations, deviates from the expected rate during your chosen intervals.

Enrollment Period: Planning ahead is crucial. Sign up for PRF Insurance during the enrollment period to cover when it matters most. The deadline for applying for PRF coverage is December 1.

PRF Insurance is an essential tool for navigating the unpredictability of rainfall. With this peace of mind, you can focus on keeping your operation running smoothly, even when Mother Nature has other plans. Investing in PRF is not just about covering today’s risks—it’s also about securing your future.

To learn more, visit momentum.ag.