At Smith Insurance we help you protect what is most important to your operation and family. Learn how we can help protect your farming operation using an area-based plan of insurance, called Pasture, Rangeland, or Forage (PRF).
How Could a Drought Impact Your Haying and Grazing Acres?
Dry conditions can affect more than your crops. If you have decreased forage production for grazing or hay, you could end up paying more in feeding, destocking, or depopulating your livestock. Lack of rainfall on your perennial pasture, rangeland, or forage acres could impact you feeding the whole herd.
Why Should You Protect Your Pasture, Rangeland, or Forage (PRF) Acres?
FINANCIAL BACKUP PLAN
PRF coverage is a better option than selling cattle when there's a shortage of grazing and haying acres. Payments can be used to buy additional hay and keep your herd headcount.
PROVIDES GOOD VALUE
PRF coverage works best as a long-term risk management program for your pasture, rangeland, or forage acres.
INSURE UP TO 90% LEVEL
With the ability to insure up to the 90% level, PRF has a smaller deductible than most standard row crops insured at the 70-75% level. Premiums are more affordable with federally subsidized rates.
EASY CLAIMS PROCESS
Insurance payments are generated once final rainfall amounts are determined so no notice of loss is needed.
Your FMH agent can customize a quote for your specific grazing or hay operation that gives you the best protection for your budget.
Pasture, rangeland, and forages cover approximately 55 percent of all U.S. land, nearly 650 million acres. In 2020, less than a third of these acres were protected.
How Does PRF Coverage Work?
PRF covers losses of forage produced for grazing or harvest for hay.CLICK HERE TO CONTACT US!
COVERAGE IS BASED ON PRECIPITATION
- Coverage is based on a lack of precipitation or rainfall using the Rainfall Index area-based plan of insurance.* The index reflects how much precipitation is received relative to the long-term average for a specified area and timeframe.
COVERAGE AREAS IDENTIFIED WITH GRID ID'S
- Coverage areas are identifed using Grid ID's. Each grid covers an area equal to .25 degrees in latitude by .25 degrees in longitude.
- The Sales Closing Date is December 1 to secure coverage.
- Coverage is based on two-month time periods called Index Intervals. A minimum of two Index Intervals must be selected, but up to six time periods can be selected throughout the year.
- The plan offers flexibility to pick the intervals most important for rainfall needed for forage growth.
- PRF coverage is offered in the 48 contiguous states except for certain grids that cross international borders.
- Certified organic and transitional organic irrigated hay practices are eligible for coverage.
PAYMENTS ARE TRIGGERED AUTOMATICALLY
- No notice of loss is needed. Insurance payments are systematically generated once the USDA RMA releases final rainfall amounts and payment factors.
When Do I Need to Sign up for Such Coverage?
The PRF Sales closing date is December 1. Waiting until the deadline could impact your ability to get coverage. The sooner you reach out to a licensed agent to discuss your options, the better.
Interested in Finding Out More?
Talk to a locally licensed Smith Insurance agent about how to protect your pasture, rangeland, or forage against lack of rainfall.
Contact us today to see if PRF is right for you!