Pasture, Rangeland, Forage (PRF) is a federally subsidized insurance program that protects from losses due to the lack of rainfall. PRF helps to offset expenses during dry times when additional costs for feed, destocking, or depopulating can occur.
Deadline to secure PRF coverage is December 1st!
How Does It Work?
You can customize your coverage by choosing:
- Which intervals (2 month periods) you want to insure
- A coverage level between 70 and 90 percent
- The productivity factor to match the amount of protection to the value of your operation’s production
Note: PRF is not drought insurance. For informational purposed only. Contact an agent and policy documentation for full details.
Sample Calculation
With a 90% coverage level, a loss will trigger on the intervals whose rainfall index falls below an actual index value, or trigger index, of 90. The rainfall index is based on interpolated data from multiple stations for that grid and interval.
| Coverage Level – 90% Productivity Factor – 110% Share – 100% Insured Acres – 500 |
| Select three intervals: Feb-March: 40% of value April-May: 10% of value Jun-Jul: 50% of value |
| Total Policy Protection = $31,482 Total Premium = $4,732 Subsidized at 51% = ($2,413) Producer Premium = $2,319 |
| Interval | Trigger Index | - Rainfall Index | Resulting Value | / Trigger Index | x Policy Protection/Interval | = Loss Payment |
| Feb-Mar | 90 | 65.8 | 24.2 | /90 | $12,593 | $3,386 |
| Apr-May | 90 | 93.3 | 0 | /90 | $3,148 | $0 |
| Jun-Jul | 90 | 87 | 3 | /90 | $15,741 | $525 |
| TOTAL | $31,482 | $3,911 |
In this example, for $2,319 in premium, the producer has $31,482 coverage on 500 acres and receives a loss payment of $3,911 due to lack of rainfall based on their coverage elections. This sample is for example purposes only. Contact an FMH agent for full details.