Pasture, Rangeland, and Forage (PRF) Insurance is designed to protect ranchers in Montana and the rest of the contiguous United States from losses caused by a deficit in rainfall. 

What is PRF Insurance?

PRF Insurance is a USDA-subsidized insurance program that enables ranchers to protect their profit margin from the financial impacts of forage loss caused by lower-than-average rainfall. 

Insured ranchers receive indemnities when precipitation in their area falls below the 70-year average during their coverage intervals. 

How Does PRF Insurance Work?

PRF insurance coverage is allocated in two-month intervals throughout the year. This means that you can be covered for January-February, March-April, and so on. Your Redd Summit agent can place your coverage into intervals that will maximize your chances of receiving an indemnity. Here’s a breakdown of how an indemnity is triggered: 

1. Four NOAA weather stations record the rainfall for your insured grid during your insured intervals. 
2. The rainfall data is reported to the USDA’s Risk Management Agency (RMA) at the close of your insured interval(s).
3. The RMA determines if your grid has received less rainfall than your grid’s 70-year historic average within a specified interval. 
4. If you received less rainfall than the historic average, then an indemnity will be credited toward your policy.
5. Indemnities are credited toward your premium until the balance is satisfied, then any additional indemnities are issued directly to you in the form of a loss check. 

Is PRF Insurance Worth It For Montana Producers?

Montana is prone to unpredictable weather. For many local ranchers, PRF insurance has proven to be a valuable risk management tool to protect their profit margin from the impact of dry conditions. 

However, the decision to sign up for a policy is a personal choice based on your risk tolerance, operation goals, and overall risk management strategy. For now, let’s discuss the benefits of coverage

What are the Benefits of PRF Insurance Coverage?

• Risk management: By signing up for PRF insurance, ranchers can effectively manage the risk of forage loss due to insufficient rainfall.
• Flexibility: PRF insurance policies through Redd Summit Advisors are customized to align with their specific needs and risk tolerance.
• Peace of mind: With PRF insurance, ranchers can have peace of mind knowing that they are financially protected against losses caused by dry conditions.
• Financial support: PRF insurance provides financial support to help ranchers recover and continue their agricultural operations.

What Does PRF Insurance Cover?

Your PRF policy can insure all of your grazing and haying acreage, whether owned or leased, irrigated or non-irrigated, below-average rainfall. 

Does PRF Insurance Cover Drought?

PRF insurance is based on historical rainfall data for your area to protect your profit margin from the financial impact of lower-than-average rainfall. It does not require that your area be under active drought conditions to qualify for coverage. 

Does PRF Insurance Cover Forage Loss?

Pasture, Rangeland, and Forage insurance technically covers forage loss. However, it does so indirectly. Your PRF coverage is not based on actual forage yields but is instead based on the direct correlation between below-average rainfall and a decrease in forage production. 

Does PRF Insurance Cover Rainfall Deficit?

PRF Insurance is designed to protect ranchers from a rainfall deficit. In the event of below-average precipitation, this coverage provides a safety net for insured ranchers to mitigate the financial impact of a loss in forage production.

How to Apply for PRF Insurance

Applying for PRF (Pasture, Rangeland, and Forage) insurance in Montana is extremely easy. Contact a Redd Summit Agent at (435) 625-1022 and follow these three steps: 

1. Confirm your acreage report with your Redd Summit Agent
2. Submit a 5-minute application
3. Lock in your policy option

That’s it! Your Redd Summit Agent will work with you to ensure that your policy aligns with your personal risk tolerance and goals for your operation. 

Frequently Asked Questions

1. What is the PRF (Pasture, Rangeland, and Forage) insurance program in Montana?

The PRF program in Montana is a federal crop insurance program specifically designed for ranchers to manage their risks during dry conditions. It addresses reduced cash flow when precipitation falls below average and allows ranchers to insure their rangeland against the lack of precipitation.

2. How much does it cost to insure rangeland with PRF in Montana?

The cost to insure rangeland varies depending on factors such as premium rates, coverage level, and productivity in the area. Ranchers pay premiums for PRF, but the USDA covers at least 50% of the total due to the subsidy. . 

3. How does PRF insurance work and what does it cover?

PRF insurance utilizes the Rainfall Index (RI) based on weather data collected by NOAA's Climate Prediction Center. The RI reflects the amount of precipitation received relative to the long-term average for a specified area and timeframe. Ranchers can choose to insure grazing land, hay land, or both. The coverage level can be set between 70 and 90 percent of average rainfall. 

4. How can ranchers in Montana determine if PRF would have performed on their ranch?

Ranchers in Montana can contact a Redd Summit agent at (435) 625-1022 to receive a free PRF performance analysis on their land.

5. What is the deadline for signing up for the PRF program in Montana?

The sign up deadline for 2024 PRF insurance is December 1, 2023.