PRF Insurance In California

Pasture Rangeland and Forage (PRF) Insurance, also known as Pasture, Rangeland, and Forage Insurance, is a valuable coverage option available to ranchers in California. This insurance is designed to protect against the loss of forage caused by drought, excessive rainfall, or other weather-related perils, ensuring financial support for ranching operations that heavily rely on forage to feed their livestock. Understanding the intricacies of PRF insurance and its benefits is essential for ranchers in the Golden State.

How PRF Insurance Works in California

PRF insurance operates by utilizing historical weather data and rainfall indices to assess the potential forage loss. 

PRF POlicies built by Redd Summit advisors are customized to the needs of your specific operation in California. You can select a coverage level and intervals that align with your goals and risk tolerance. 

When actual rainfall falls below your selected coverage level (70-90% of normal rainfall) during your insured interval(s), an indemnity is credited toward your policy, without you needing to file a claim or meet with an adjuster. 

Is PRF Insurance Worth It for California Ranchers?

Assessing the value of PRF insurance is highly personal, but here are the universal benefits that insured ranchers enjoy: 

• Risk Mitigation: 

Ranchers insured with a PRF policy can effectively manage the risk that insufficient rainfall poses to their operation. 

• Financial Protection:

Insured ranchers receive financial support in the form of cash indemnities when rainfall is below their chosen coverage level during their insured interval(s). In many cases, the indemnities are used to cover the cost of supplemental forage. 

• Peace Of Mind During Dry Conditions

Ranchers that participate in the PRF program enjoy the peace of mind that they’ll be covered during a dry spell, rather than worrying about taking a huge hit to their profit margin to cover their costs. 

Frequently Asked Questions

1. How does the PRF insurance program work in California?

The PRF insurance program in California and the rest of the contiguous United States is designed to protect ranchers' operations from forage loss due to a lack of precipitation. 

It covers pasture, rangeland, or forage acres used for grazing or hay production. Ranchers select two or more separate index intervals to place their coverage. During these intervals, Actual precipitation amounts are compared to the trigger grid indices, and if any of the grids had rainfall less than the trigger index, ranchers may receive an indemnity.

2. What is the coverage deadline for the PRF program in California for 2023?

The coverage deadline for the PRF program in California for the year 2024 is December 1st, 2023.

3. Is there an upfront cost to enroll in the PRF insurance program in California?

No, there is no upfront cost to enroll in the PRF insurance program in California. The enrollment process is simple and does not require any initial payment.

4. How are indemnities for the PRF program in California determined?

Indemnities for the PRF program in California are determined based on data from the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center (CPC). If rainfall is less than 90% of normal based on the NOAA data, participants may receive compensation for their losses of forage.

5. Can both irrigated and dry land forage be covered under the PRF insurance program in California?

Yes, the PRF insurance program in California is available for both irrigated and dry land forage. 

6. Where can I sign up for PRF insurance coverage in California?

To sign up for PRF insurance coverage in California, you can contact a Redd Summit agent at (435) 625-1022 or click the “Talk To An Expert” button.