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PRF insurance coverage in El Campo, TX, Pasture

Pasture, Rangeland, Forage (PRF)

Ag 1st LLC offers PRF coverage on pasture, hay, or forage acres. It was designed to help protect a producer’s operation from the risks of forage for grazing or harvested for hay due to lack of precipitation that results in increased cost for feed, etc.

How It Works

The PRF program utilizes a rainfall index to determine precipitation for coverage purposes and does not measure production or loss of products themselves. The National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC) collects and utilizes precipitation data in a grid system to determine a final grid index.

They do not use precipitation data from individual farms or ranches or specific weather stations in the general area. Each grid is .25 degrees in latitude by .25 degrees longitude, which translates to approximately 17 x 17 square miles at the equator. The policy divides the calendar year into two-month intervals beginning in either January (Jan/Feb, Mar/Apr, May/Jun, Jul/Aug, Sep/Oct, Nov/Dec) or February (Feb/Mar, Apr/May, Jun/Jul, Aug/Sep, Oct/Nov). With the help of RMA’s calculation tool, we can provide quotes to help producers select a coverage level, productivity factor, intervals, irrigation practice, and acres to be insured. Indemnity payments are automatically triggered when the final grid index falls below the policyholder’s trigger grid index. The sales closing deadline is November 15th of each year.

Premium Not Billed Until August of the Following Year

Unlike home or auto, the premium is not paid upfront. It is billed in August of the year following sign up and can be paid up until September 30th without added interest. If a payable loss is triggered, payment is applied to the premium due first, and any remaining claim proceeds are sent to the producer.

Have additional questions? Give us a call!