PRF Insurance In Kansas

Pasture, Rangeland, and Forage (PRF) insurance is a type of crop insurance designed to protect ranchers against losses caused by drought or lack of rainfall. Given the current state of drought in Kansas, PRF insurance can be a valuable tool for producers state-wide. 

What is PRF Insurance?

PRF insurance is a risk management tool specifically designed for livestock producers who rely on forage to feed their animals. It is a form of crop insurance that provides protection against losses resulting from lower-than-average precipitation that will result in a decline in forage production.

The program was created and is subsidized by the USDA to enable ranchers to safeguard their livelihoods and the American food supply during dry conditions.

How Does PRF Insurance Work?

PRF insurance is based on historical and current rainfall measurements, your coverage will work as follows:

1. Four NOAA weather stations collect rainfall data for the grid in which your land falls into
2. NOAA reports the data to the USDA’s Risk Management Agency (RMA)
3. The RMA compares the actual rainfall data to your grid's 70-year average rainfall
4. If your grid received less rainfall than the 70-year average during your insured interval, you will be issued an indemnity or a loss check to cover your forage loss
5. There are no restrictions on how you may utilize your loss checks - do whatever is best for your operation!

What Is the Purpose of PRF Insurance?

The objective of PRF insurance is to be utilized as a resource for ranchers to protect their operations against potential losses resulting from low precipitation levels. 

What Does PRF Insurance Cover?

PRF Insures the following acreage, whether owned or leased, against lower-than-average rainfall 

• Grazing Acreage 
• Irrigated Hay Ground
• Non-Irrigated Hay Ground

Is PRF Insurance Worth It In Kansas?

When considering PRF insurance, it's important to weigh the benefits to determine if it's worth it for your specific. 

• Protection against income loss: PRF insurance provides coverage for ranchers in the event of low rainfall that results in forage losses, helping to mitigate financial risks.
• Peace of mind: Having PRF insurance gives most ranchers peace of mind knowing that they have a safety net in case of dry weather conditions. 
• Financial stability: Most insured ranchers remain net positive over the lifetime of their policy, even when taking into account years in which they’ve owed their premium 

If you decide that a PRF insurance policy could be a good fit for your operation, contact a Redd Summit agent at (435) 625-1022 to get a free quote and discuss your risk tolerance

What is Drought Insurance?

While there’s technically no such thing as drought insurance, PRF insurance is often nick-named “drought insurance” because it protects ranchers against the financial loss associated with insufficient rainfall and low forage production.