PRF Insurance in New Mexico

Pasture, Rangeland, and Forage (PRF) insurance, enables ranchers in New Mexico and the rest of the contiguous United States to protect their bottom line from losses caused by lack of precipitation and its effect on forage production. 

What is PRF Insurance?

PRF Insurance is a USDA-subsidized risk management tool that ranchers can utilize to protect their operations from the financial impact of dry conditions. 

How Does PRF Insurance Work?

PRF insurance differs from standard crop insurance in that it is based on rainfall data, rather than actual forage yields. Here’s how it works: 

• You choose your policy’s coverage level, which can range from 70%-90% of average rainfall.
• After one of your insured intervals* is complete, your actual rainfall total is compared to your 70-year average.
• If you receive less rainfall than your chosen coverage level during your insured interval, then you’ll be issued an indemnity or loss check through your PRF policy.
• Indemnities will be credited toward your premium balance until is it 100% satisfied, then any additional indemnities will be issued directly to you in the form of a loss check(s). 

*PRF coverage is spread into two-month intervals throughout the year (Jan.- Feb., Mar.-Apr., etc.)

Is PRF Insurance Worth It In New Mexico?

Between your risk tolerance and goals for your operation, signing up for PRF insurance isn’t always a simple, black-and-white decision. Here’s what you should consider while weighing your options. 

• Financial protection: A PRF policy enables you to protect your bottom line against losses caused by dry conditions, something that was previously outside of your control.
• Mitigate Drought Costs: Drought and lack of rainfall can be costly in more ways than one for ranchers. A PRF policy can help to free up some of your cash flow to sustain your operation.
• Customize Your Coverage: Your Redd Summit Agent will tailor your policy to meet your risk tolerance and operation needs; you can have confidence that your policy is set up to perform on your land. 

Is PRF Insurance the same thing as Drought Insurance?

While PRF insurance does offer protection against low rainfall, it is not technically “drought insurance” (there’s actually no such thing). 

PRF insurance does not require that your area fall within true drought parameters to issue indemnities. Your policy will trigger indemnities or loss checks whenever rainfall is below your coverage level during your insured intervals, even if you’re not technically in a drought. 

How to Apply for PRF Insurance in New Mexico

Applying for PRF coverage is easy! You can get coverage in 3 steps:

1. Call (435) 625-1022 to contact a Redd Summit agent
2. Complete a 5-minute application
3. Lock in your coverage!

That’s it, and your Redd Summit Agent Team will be available to answer any questions that may arise throughout the process.