Pasture, Rangeland and Forage (PRF) Insurance

What is PRF Insurance?

PRF offers ranchers and hay growers highly customizable protection against below average precipitation. Indemnity (payment) is based on number and type (pasture or hay) of acres insured, and is triggered when precipitation for a specific area falls below its historic average during a specific time period.

Why Insure? 

All ranchers and hay growers are affected by lack of precipitation

PRF is Smart: The USDA subsidizes premium amounts up to 59%, making this an affordable and beneficial tool for many ranchers.

PRF is Simple: Precipitation and historic averages are determined by the National Oceanic and Atmospheric Administration (NOAA), which means data, not an adjuster, determines indemnity.

Why EastCo Group? 

We're ranchers who are PRF experts

Each PRF policy can and should be different: Every rancher has a different level of risk tolerance and different goals. EastCo Group takes the time to understand these priorities first and then conducts a custom analysis to generate valuable and highly personalized data.

We understand the many details and the big picture. We walk you through the numerous decisions that must be made for each policy and then provide useful, timely policy updates throughout the year.

Policy Decisions

Number and Types of Acres: You can insure up to every pasture or hay acre you own or lease.

  • Farm Service Agency Farm Numbers are used to prove acres and ownership/lease
  • Hay acres must be designated as irrigated or non-irrigated and organic or non-organic

Coverage Level: You can insure 70–90% of historic average precipitation. Precipitation must fall below your coverage level for a grid/interval to trigger indemnity.

Productivity Factor: You can value your acres at 60–150% of the average value in the county. The amount of indemnity you receive is based on the productivity factor you select.

  • Average value, called the County Base Value, is set by the USDA

Intervals: You choose which two-month periods to insure during the year.  Choose as few as 2 and as many as 6 of the 11 possible intervals in each grid.

  • Each interval is independent, meaning precipitation starts at zero for each interval (for example, rainfall in May has no effect on Jun–Jul)

The Rainfall Index Grid System

The entire US is covered by grids measuring .25° latitude by .25° longitude. NOAA calculates the unique rainfall history (1948–present) for each two-month interval in every grid by combining and smoothing precipitation data from official NOAA weather stations. Contiguous property that crosses grid lines can be insured in one or multiple grids.

Rainfall grid index image over Cheyenne County - Eastco Group

PRF Timeline

  • September 1–December 1: Sign up/Renew for next year
  • January 1–December 31: PRF crop year
  • September 30: Premium due. Any indemnity received prior automatically goes towards the premium
This is an informational document only and results may vary by individual