What Is PRF?


How you set your policy up matters! 

The simple truth is not all agents truly understand how PRF really works.
We do. PRF is all we do.

Take a look at your policy. If you are currently set up with acres spread across the entire year then it is safe to say you are not set up correctly. Even if you have never paid a premium you are not getting the full value of the policy.
Give us 20 minutes to sit down with you and show you why. We promise it will be worth your time.

There is no need to settle for average. 

PRF Basics

Rainfall Index for Pasture, Rangeland, and Forage (RI-PRF) is an insurance product developed to provide livestock producers and forage producers with a tool to mitigate drought risk. Although RI-PRF is in the U.S. Federal Crop Insurance Program it differs from crop insurance products for traditional commodities. This is partly due to its nature as an index insurance product and also its allowance that the farmer decides the time of year to insure. The RI-PRF program is based on rainfall indices that are calculated using precipitation measured over 2-month intervals within a specified grid area. With our help, the insured must choose amongst various 2-month intervals and allocate their acres across the intervals selected. When the average rainfall is less than the guaranteed amount for the insured area the insured is paid an indemnity based on the difference between the two. PRF first appeared as a pilot program in 2007 and since then RI-PRF has expanded significantly. Insured acres nearly doubled from 2007 to 2016 and the insured liability in 2016 was about four times greater than in 2007 (RMA 2018c). In 2016 the RI-PRF program was the ninth largest commodity in terms of insured liability in the U.S. Federal Crop Insurance Program (RMA 2018c). Even so, only about 50 million acres were insured in 2016 while the 2012 Census of Agriculture indicates that about 415 million acres were devoted to “permanent pasture and rangeland.” This suggests a relatively low participation rate in RI-PRF, particularly compared to the major field crops where insured acres usually represent 80% or more of the total planted acres (NASS 2014; RMA 2018c). 

PRF Definitions

In crop insurance, there are a few basic things you need to complete a policy. You must be able to show what you are doing. Where is your farm located? What are you insuring (Hay/Pasture/both)? When do you need coverage? Finally, how much coverage?  In short, "What, where, when, and how much?" Below we will cover each of these in more detail.

Grid(s) - In PRF when you are talking about Grids you are talking about location. Where is your farm located? Your farm may be in one or multiple grids. We will help you with this. 

Intervals -  When do you need coverage? The interval is a specific period covered by the PRF policy and is a two-month interval. PRF coverage is divided among intervals to spread the coverage across the calendar year. Insured intervals are not permitted to overlap to include the same month. For example, you cannot have coverage in Mar-Apr and Apr-May since April overlaps the two intervals.
RI Intervals: Jan-Feb, Feb-Mar, Mar-Apr, Apr-May, May-Jun, Jun-Jul, Jul-Aug, Aug-Sep, Sep-Oct, Oct-Nov, Nov-Dec

Productivity Factor - The productivity factor is tied to the level of imputes you use. Along with the coverage level, this ties in directly with the amount of insurance coverage you have. The amount of coverage per acre is based on separate published county base values by RMA for two different intended uses - haying and grazing. These values vary significantly across the country. A producer chooses to cover the published value for each intended use from 60% to 150%. This is called the productivity factor.

Coverage Level - Once a productivity factor is selected, then a coverage level is selected by the producer. The coverage level is 70%, 75%, 80%, 85%, or 90%. The coverage level is the amount you want to insure of the historical rainfall. For example, if you were to get 10 inches of rain for the Jan-Feb interval and you had 90% you would be guaranteed 9 inches of rain. If it rained 14 inches, you received more than your guarantee, and you are owed nothing. If you revived only 5 inches, you are short your guarantee by 4 inches and you will be paid an indemnity.

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PRF Statistics

588
Million

Number of pasture and rangeland acres in the United States. 

61.5
Million

Number of haying acres in the United States

90%

Cover up to 90% of your historical rainfall. 

51%

The amount of subsidy for the premium on your policy. 

USDA Crop Insurance 

If you are looking for more information click the button below. It will take you directly to the USDA website's PRF information page. 

USDA Website Link

Decision Support Tool

If you want to find your grid, look at the historical rainfall numbers for your area and more then click the button below and it will take you directly to the USDA decision support tool for PRF.  

PRF Decision Support Tool

Frequently Asked Questions

When can I buy this?

You can buy it today but 12/01/2024 is the last day to buy coverage for the 2025 crop year. 

When do I pay the premium for my policy?

The premium is due at the end of the policy. For the 2024 crop year, you will be billed on September 1st, 2025

How do I turn in a claim? 

There are no claims to turn in. The rainfall index is measured by NOAA. If your area triggers a loss then you will be paid automatically. If you have a claim we will notify you. 

Can I insure rented land?

Yes, but you will need to make sure you have a copy of the lease agreement that we can turn in with the paperwork. If you need a generic lease agreement we have one that we can give you.