By Andi Anderson
Pasture, Rangeland, and Forage Rainfall Index (PRF) insurance provides livestock and forage producers protection against rainfall shortages that affect forage production.
This insurance is designed for perennial pastures, rangelands, and forage lands but does not cover annual crops.
PRF insurance is based on a rainfall index, not actual forage yields, using weather data to determine whether rainfall in an area is below historical averages. It uses a grid system to calculate coverage, with each grid based on location, ensuring coverage matches local conditions.
Producers can customize their coverage by selecting the number of acres insured, intended use (grazing or haying), coverage levels, and productivity factors.
PRF insurance offers coverage levels ranging from 70% to 90%, with higher coverage levels requiring higher premiums. Federal subsidies reduce the premium costs, making this insurance affordable for many producers.
Producers also choose specific two-month intervals for coverage, ensuring the insurance matches the most critical periods for their forage production. Indemnity payments are triggered if rainfall during the chosen intervals falls below the selected coverage level.
In Illinois, this program is underutilized, with only about 6% of eligible land enrolled in 2024. However, PRF insurance offers solid protection.
For every $1 spent on premiums, producers in Illinois typically receive $1.29 in indemnities, making it an attractive option for managing risks associated with unpredictable rainfall.
PRF insurance, combined with other management strategies like improved soil health and grazing techniques, can help livestock producers safeguard their forage against adverse weather conditions.
Photo Credit: gettyimages-jessicahyde
Categories: Illinois, Livestock, Weather