‘Tis the Season.

September 1 may not come with a national holiday, but it does mark opening day for arguably one of the best risk-management programs available to livestock producers today: PRF. The 2027 PRF booking window is officially open!! Giving you exactly three months to get coverage in place. Take it from a retired procrastinator: three months on the calendar feels more like three weeks in this business – so do with that information what you will!

The best thing about this product – it doesn’t take a college course to understand. PRF stands for Pasture, Rangeland and Forage, although I’ve come up with a few unofficial versions that seem more fitting in the depths of drought but in plain sight – PRF is a federally subsidized crop insurance program designed to protect pasture and haying ground when rain falls below 90% of the historical average. Also bear in mind that I use drought loosely. You don’t have to be painted in red on the drought map for PRF to pay.

PRF essentially divides the country into 17 x 17-mile grids. We would, of course, select the grid your property lies in. And from there, distribute coverage accordingly based on 2-month intervals: January/February, February/March, March/April and so on. If the rainfall in your grid falls below 90% of its historical average in the months you’ve selected, Uncle Sam steps in. Ideally, that payment helps offset some of the costs that tend to follow dry weather, such as additional feed, purchased hay or alternative grazing.

Coverage is 100% flexible – and the quoting system helps give you a better understanding of when coverage is needed most based on the historical rainfall in those months over the past 10-20 years.  You can distribute coverage evenly throughout the year if it makes more sense for your operation. You can also focus more heavily on prime production months or stack coverage in historically drier months to maximize protection. Quite frankly, unless you need a boat to check cows, I’m telling you, PRF is worth a look.

Not to mention, the federal subsidy cuts your out-of-pocket cost by 51% - 59%. There is also no cost due at sign-up, and payments are based directly on rainfall rather than your individual production. In many areas, we’ve found strong loss ratios. You say.. well what does that mean? For example: 7:3 would be a strong loss ratio – meaning 7 out of 10 years insurance paid you, while 3 of those 10 years you may have paid in – or broke even. While that isn’t a guarantee of future performance, the statistics on this are awfully hard to ignore, and if it rains – even better. Either outcome beats standing in the pasture cussing Mother Nature - Speaking from experience.

For a quote, send me your state and county, FSA farm numbers or nearest address, approximate acreage, & whether it is grazing or haying ground. The PRF window closes December 1 - weather complaints are open year-round. Have a good evening!

Thanks,

Samantha Cozza-Wright