PRF insurance is not drought insurance, in that it doesn’t account for high temperatures or windy conditions in triggering its indemnity payments.
PASTURE/RANGELAND/FORAGE Insurance
Nearly 55% of all land in the United States falls into the pasture, rangeland or forage cover categories. Protecting the integrity of these areas and the feeds they produce is essential to maintaining your farm’s livestock and its financial viability.
PASTURE/RANGELAND/FORAGE Insurance
Pasture/rangeland/forage (PRF) insurance is an area-based insurance plant that gives producers a risk management tool that specifically covers the amount of precipitation needed to produce forage – typically grazing pastures and perennial hay production – for their operation in their geography. It is designed to cover replacement feed costs when losses are experienced due to lack of precipitation.
Drought Insurance
Drought insurance, also known as rainfall index insurance, is based upon weather data collected by the National Oceanic and Atmospheric Administration (NOAA’s) Climate Prediction Center. As an indexed coverage, it measures current levels of precipitation against long-term averages for specific areas and timeframes.
Unlike other area-type insurance policies that use state or county boundaries to determine coverage availability, drought/rainfall index insurance is based upon a grid system that doesn’t follow geopolitical boundaries. Contact us at ARM Services to see if your location is eligible for coverage.
LEARN MORE
