PRF Insurance in North Dakota

Pasture, Rangeland, and Forage (PRF) Insurance is a vital risk management tool that offers protection for ranchers in North Dakota against the risks of drought, low rainfall, and subsequent forage losses. A PRF insurance policy through Redd Summit Advisors is custom-tailored to the specific needs of your North Dakota operation.

What is PRF Insurance in North Dakota?

PRF insurance, short for Pasture, Rangeland, and Forage insurance, is a USDA-subsidized insurance program that serves as a risk management tool for ranchers. This specialized coverage protects against losses resulting from drought or inadequate rainfall, that lead to diminished forage production.

How Does PRF Insurance Work in North Dakota?

Your PRF insurance coverage operates by triggering indemnities each time your insured grids in North Dakota experience rainfall levels below the 70-year historical average during your insured intervals. 

These indemnities are initially credited toward your premium balance until it is satisfied in full, and then any remaining indemnities are issued directly to you. 

By participating in the PRF insurance program, ranchers in North Dakota can safeguard their profits and ensure the sustainability of their operations, even during dry conditions.

Is PRF Worth It for Your North Dakota Ranch?

When considering PRF (Pasture, Rangeland, and Forage) insurance in North Dakota, it's essential to assess several factors to determine if it aligns with your ranching operation:

Assess the Risk: Analyze the likelihood of low precipitation affecting your operation and its potential impact on your income. Additionally, evaluate the risk of consistent higher-than-average precipitation that could result in consistently owed insurance premiums, and work with your Redd Summit agent to create a policy that aligns with your goals and risk tolerance.

Evaluate the Coverage: Understand the specific coverage options offered by your Redd Summit PRF insurance agent, particularly how each is tailored to meet your personal needs. 

Understand Premium Costs: Know the premium associated with your PRF insurance policy and develop a plan to settle the balance if you receive more rainfall than the 70-year historical average during your insured intervals.

Consider Other Risk Management Tools: Explore additional risk management strategies, such as diversification of your operation or other insurance options, to determine if PRF insurance complements your risk management toolbox.

What Are the Benefits of PRF Insurance in North Dakota?

Ranchers in North Dakota can enjoy several advantages by adopting a PRF policy to protect their profit margin from the impact of low rainfall:

Financial Security: PRF insurance provides a safety net against losses caused by drought, low rainfall, and the subsequent decline in forage production.

Flexibility: Ranchers insured through Redd Summit Advisors can customize their coverage based on their specific needs and risk tolerance.

Simple Claims Process: In the event of a loss, such as lower-than-average rainfall during your insured interval, ranchers don't need to file a claim. An indemnity credited to your policy is automatically issued.

Stability: PRF insurance ensures ranchers have a consistent source of financial support during dry periods, helping to stabilize their income over the long term.

Peace of Mind: By having PRF insurance, ranchers can mitigate the financial risk and stress associated with forage loss due to low rainfall, allowing them to focus on other aspects of their ranching operation.

What Does PRF Insurance Cover in North Dakota?

PRF insurance covers the pasture, rangeland, and forage of ranchers in North Dakota, whether owned or leased. It provides protection against the decrease in forage production caused by lower-than-average precipitation. Indemnities and loss checks are issued based on the assumed loss incurred by an insured rancher due to inadequate rainfall. Rainfall data for North Dakota is reported on a per-grid basis to the RMA by the National Oceanic and Atmospheric Association (NOAA).

Is PRF Coverage Drought Insurance in North Dakota?

While there is technically no "drought insurance," PRF insurance is often referred to as drought insurance because it effectively safeguards ranchers' profit margins from the adverse impact of low rainfall. By participating in the program, ranchers in North Dakota can minimize the financial consequences of reduced forage yields, increased production costs, and supplemental forage costs.

Is PRF Coverage Forage Insurance in North Dakota?

PRF insurance protects against the financial impact of decreased forage production caused by a lack of rainfall. However, it does not measure forage yields to determine if a rancher is eligible for an indemnity or a loss check. Instead, PRF insurance relies on NOAA rainfall data to calculate a rancher's assumed loss when rainfall is lower than average within their insured interval and grid to issue an indemnity or loss check.

Is PRF Coverage Rainfall Insurance in North Dakota?

Rainfall insurance is another nickname for PRF insurance. Given that this coverage protects ranchers from the financial losses associated with low rainfall, "rainfall insurance" is a fitting description for the PRF program.

Does PRF Insurance Cover Other Natural Disasters in North Dakota?

PRF insurance covers ranchers against the financial impact of insufficient rainfall and the costs associated with subsequent forage loss. It does not extend to other natural disasters such as hurricanes, floods, or wildfires.

Can PRF Insurance Protect Against Market Price Fluctuations in North Dakota?

No, PRF insurance does not protect against market price fluctuations. However, ranchers looking for protection against market price fluctuations can explore options like Livestock Risk Protection Insurance (LRP). It is advisable to speak with your Redd Summit Agent about LRP coverage for your cattle.

Frequently Asked Questions

What is PRF insurance, and how does it benefit ranchers in North Dakota?

PRF insurance is a program subsidized by the U.S. Department of Agriculture's Risk Management Agency (RMA), aimed at providing annual protection against insufficient rainfall for ranchers relying on forage production in North Dakota. It offsets replacement feed costs in the event of forage loss due to inadequate precipitation, helping ranchers manage risk during dry conditions.

How does PRF insurance work in North Dakota?

PRF insurance in North Dakota involves comparing your grid's 70-year average rainfall and NOAA rainfall data during your insured intervals to determine if you are owed an indemnity or loss check. Producers insure their acreage for two-month intervals during one crop year.

Where can I sign up for PRF insurance in North Dakota?

To enroll in the PRF insurance program in North Dakota, you can contact a Redd Summit Agent at (435) 625-1022 or by clicking the “Talk To An Expert Button” in the top right corner of this page. 

How can I get more personalized assistance with PRF insurance in North Dakota?

If you need more information or personalized assistance with PRF insurance in North Dakota, contact Redd Summit for guidance and support by calling (435) 625-1022 or by clicking the “Talk To An Expert” button in the top right corner of this page.