PRF Insurance in Oklahoma

PRF Insurance, also known as Pasture, Rangeland, and Forage Insurance, is designed to protect ranchers against losses caused by drought and rainfall deficiencies that cause a decrease in forage production. This insurance program provides financial support to producers in Oklahoma and other regions where dry or wet conditions play a crucial role for livestock operations.

What is PRF Insurance?

PRF insurance, also known as Pasture, Rangeland, and Forage insurance, is  a USDA-subsidized risk management tool designed to safeguard ranchers and livestock producers from financial losses caused by insufficient precipitation. 

Insured producers receive indemnities or loss checks when rainfall in their insured grids is below their coverage level during their insured intervals. 

How Does PRF Insurance Work?

PRF Insurance works by utilizing historical rainfall data and predetermined coverage levels to determine if a loss has occurred on your operation due to lack of rainfall. When rainfall falls below your coverage threshold (70-90% of avg. rainfall), you’ll receive an indemnity or loss check to compensate for your losses incurred by decreased forage production. 

Is PRF Insurance Worth It in Oklahoma?

Now, the question arises: Is PRF Insurance worth it? The answer depends on several factors, such as the rancher's reliance on rainfall and the potential financial impact of dry conditions. Oklahoma ranchers need to evaluate their specific circumstances, risk tolerance, and financial goals before deciding if PRF Insurance is a worthwhile risk management tool. For now, let's evaluate the benefits of PRF coverage:

• Financial Protection: PRF Insurance protects against losses caused by rainfall deficiency, something previously out of ranchers’ control.
• Flexible Coverage: Redd Summit can customize your  coverage options to meet the needs of your specific Oklahoma operation, your risk tolerance, and your financial goals.
• Risk Management: Ranchers insured through Redd Summit can effectively mitigate their risk of financial loss caused by lack of rainfall, and the Oklahoma drought.
• Agricultural Growth: PRF Insurance promotes agricultural growth by protecting ranchers’ profits during dry conditions so that they can focus on growing their operations when conditions improve, rather than solely trying to recoup their losses.

Considering the unpredictable nature of weather events and their impact on ranching operations, PRF Insurance offers peace of mind and valuable protection for ranchers in Oklahoma. 

reach out to a Redd Summit Agent at (435) 625-1022 to  to determine the best coverage options for your specific needs.

What Does PRF Insurance Cover?

PRF insurance insured ranchers for up to 90% of their 70-year average rainfall. Your insured acreage can be either owned or leased and used for livestock grazing or hay production, whether irrigated or non-irrigated. 

Coverage is allocated on a per-grid basis in 2-month intervals throughout the year. For example, if your land’s grid(s) are insured for the March-April interval for 90% of average rainfall, then you’d receive an indemnity or a loss check if NOAA reports that your grid received less than 90% of the average rainfall for March and April. 

Does PRF Insurance Cover Drought?

PRF insurance does not insure drought, specifically. Meaning, your area in Oklahoma is not required to fall within drought parameters to receive coverage. Instead, PRF insures against the financial impact of lower-than-average rainfall, even outside of true drought conditions. 

Does PRF Insurance Cover Forage Loss?

PRF insurance covers forage loss, though indirectly. Rather than calculating indemnities and loss checks based on measured forage yields, PRF losses are calculated to determine the assumed loss incurred by a lack of rainfall, as measured and reported to the RMA by the National Oceanic and Atmospheric Association. 

Does PRF Insurance Cover Rainfall Deficiency?

PRF insurance does cover rainfall deficiency, enabling ranchers in Oklahoma to protect their profit margin from losses caused by insufficient rainfall. 

How to Get PRF Insurance in Oklahoma?

Securing PRF insurance in Oklahoma is as easy as completing these 3 steps: 

1. Verify your acreage and location with a Redd Summit Insurance Agent
2. Submit a 5-minute application 
3. Lock in your coverage option to protect your profits from low rainfall.

Frequently Asked Questions

1. How does the PRF insurance program in Oklahoma provide insurance protection for perennial forage?

The PRF insurance program in Oklahoma provides insurance protection for ranchers’ pasture, rangeland, and forage by using a rainfall index to calculate indemnities or loss checks. It covers losses due to insufficient precipitation for grazing or hay production.

2. What is the premium subsidy rate for the PRF insurance program?

The premium subsidy rate for the PRF insurance program ranges from 51% to 59%, based on the coverage level chosen by the producer. This subsidy rate helps reduce the cost of premiums for participants.

3. How does the PRF insurance program offer area-wide coverage?

The PRF insurance program offers area-wide coverage by using a rainfall index based on National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC) data. It divides all of the U.S. into approximately 13x17 mile grids and provides coverage based on the rainfall data recorded in each grid.

4. Are the base values used in the PRF insurance program accurate for hay production in Oklahoma?

Further analysis is needed to assess the accuracy of county base values for hay in Oklahoma. Evaluation of the PRF program is ongoing to ensure that the base values reflect the normal historical level of hay production in each county.

5. How can the PRF insurance program help in reducing risk and protecting ranch profit?

The PRF insurance program can help reduce risk and increase ranch profit by providing financial protection against losses due to low rainfall. Producers can customize their coverage options and receive indemnities or loss checks if the rainfall index falls below the chosen coverage level.

6. Is the PRF insurance program worth it for Oklahoma producers?

Assessing whether the PRF insurance program is worth it for Oklahoma producers depends on individual circumstances and risk tolerance. Producers should consider factors such as historical rainfall patterns, their specific geographic area, and the potential benefits of mitigating losses and protecting their operations from the impacts of declining forage production.