Pasture Rangeland Forage (PRF)
PRF Insurance Plan
PRF Insurance plan is an area-based risk management tool designed to provide insurance coverage for your pasture, forage and rangeland against drought. It offers the ability to purchase insurance coverage for losses of forage harvested for hay or produced for grazing, which may lead to increased costs for feed, depopulation, destocking or other actions.
How the PRF Insurance Plan Works?
This innovative program is based on rainfall index (RI) and precipitation and uses data from each grid to determine the level of protection. You must select at least a two-month period (index intervals) where precipitation is vital to your operation. This insurance coverage is based on the experience of the whole grid and not on individual ranches or farms or a particular weather condition in the geographical area. Under this coverage, you don’t need to insure all your acres, but you cannot exceed the total number of haying or grazing acres that you operate.
Availability of PRF Insurance Policy
PRF Insurance policy is simple, and no record of production is needed. It is available in 48 neighbouring states apart from some geographical areas that cross global borders. At Northern Ag Inc, we have lots of (PRF) insurance programs that suit your needs.
Common Questions and Answers
Losses are generally paid when vegetative conditions or the grid’s accumulated index in a specific period falls below a selected percentage of significant average conditions “trigger grid index”. You may receive an indemnity for lack of precipitation. But note that payments are based on final conditions in an entire grid and not on a specific item within that grid. As a producer, you are to select the period and the number of acres during each period that you would like to insure.
The application deadline for PRF is November 15th every year. During your application, you will be asked to make several choices when insuring your hay or grazing production. These include index intervals, coverage level, irrigated practice and number of acres among many others. At Northern Ag Inc, we will create a custom insurance plan that suits your needs!
Northern Ag Incorporated has years of experience in successfully meeting the risk management needs of producers. In offering the PRF coverage, we assist in protecting the forage production aspect of your farming operation. We assist our clients in making informed insurance decisions while utilizing cutting edge technology to reduce as much risk as possible on your farming operation.
The PRF insurance policy:
- Allows you to insure some or all of your acres at any time of the year to maintain your cash flow
- Balances the cost of increased feed costs during the period of drought, so your bottom line remains healthy
- Cover up to 90% of average rainfall on your hayland and grass