Pasture, Rangeland, Forage Insurance Protect Your Ranching Operation

Call (605) 308-4585 For More Info

Pasture, Rangeland, Forage, also called PRF, protects against forage loss on haying or grazing acres because of the lack of rainfall. It helps producers cover their increased costs for irrigation, feed, destocking, depopulating caused by dry periods. A loss payout is owed when the region does not receive enough precipitation within the coverage period.

Basic Facts of PRF

Loss Occurs Without Enough Precipitation

Ranchers may receive a loss payout when their area receives below-average rainfall.

Area-Based Coverage

Pasture, Rangeland, Forage is based on the precipitation in a specific grid. It is not based on how much rainfall occurred on the specific operation.

Coverage Levels

70-90% coverage election options.

Available in All Counties

The program once limited is now offered in every contiguous US county.

Loss Payout is Automatic

No loss adjuster is needed to start the indemnity process. The Risk Management Agency (RMA) automatically calculates any loss and PRM processes the loss payment.

Not Drought Insurance

A drought does not automatically create a loss. It also does not insure against high temperatures or windy conditions.

Must be Bought Before 12/1

The Sales Close Date and Acreage Reporting Date is December 1st.

For more information call (605) 308-4585

2020 South Dakota Loss Payout Per County

Ranchers found PRF insurance to be a vital part of their ranching operation. In 2020, there were only 2 counties that did not on average receive more loss indemnities than growers paid in premium. The graphs below shows the counties that had the highest loss payments to ranchers.

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Coverage Examples

PRF can be purchased for either Grazing or Haying purposes. These two graphs show coverage examples for one grid location at 90% coverage levels. Each grid will have different premiums and dollar protections.

Grazing
Premium Average $2-$4
Coverage Level 90%
Protection Factor 100%
County Base  $16.00
Dollar Protection Per Acre $14.40
Haying
Premium Average $14-$20
Coverage Level 90%
Protection Factor 100%
County Base  $160.00
Dollar Protection Per Acre $144.00

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Maximize Your PRF With PRM

Do you know your probability of a loss for your PRF insurance? Precision Risk Management does, and they can show you! The pasture, rangeland, forage tools help determine the highest probability for a loss payment based on historical events.

Interval Periods

Intervals equate to a two-month period where you are covered for precipitation shortfalls. Producers can select a minimum of two and up to a maximum of six intervals.  Weight your chosen intervals, using the percent of value, where precipitation is needed most.

Interval Examples

Importance of Intervals

PRM will do a personal analysis for your area and provide guidance on which interval periods you could choose. You will be able to see the trends when each interval period had a loss payment.

Choosing the appropriate two to size interval periods is very important. A grower will only receive payment at the intervals they chose. Every grid has different Rainfall Index averages for each interval period. The historical data shows some interval periods have a higher probability to have a loss and cause a claim payment.

What is the Rainfall Index?

The rainfall index is how much precipitation an area has received compared to the long-term average historical precipitation an area usually receives. This data is collected and maintained by NOAA’s Climate Prediction Center. Each day NOAA uses at least 4 reporting stations to collect precipitation measurements from each grid.

Rainfall Mapping

Precision Risk Management uses all available mapping tools to track rainfall trends across the nation.

When Will a Loss Payment Occur?

A loss payout may trigger if the precipitation is below the average rainfall index at the end of the interval period, dependent on your coverage level selection.

Get More PRF Info Today by Completing the Form or Call (605) 308-4585

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Not all coverage or products may be available in all jurisdictions. The description of coverage in this document is for informational purposes only. Actual coverage will vary based on the terms and conditions of the policy issued. The information described herein does not amend, or otherwise affect, the terms and conditions of any insurance policy issued by Church Mutual S.I. Insurance Company. PRM is an equal opportunity provider.

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