March 1, 2021 | By: Kody Cox |Insurance
Texas Farm Credit has extensive experience in meeting the risk management needs of livestock producers – that’s why we offer Pasture, Rangeland, and Forage insurance – a policy that insures against periods of inadequate rainfall in a given area.
PRF insurance was developed by USDA’s Risk Management Agency and is reinsured by the Federal Crop Insurance Corporation. It uses historical weather data in order to offer flexible protection against drought.
Here’s how it works: Losses are paid when rainfall or vegetative conditions during a specific time period, within a particular grid area, fall below a selected percentage of historical average conditions. Payments are based on final conditions in an entire grid, and not just on a specific property within that grid.
A great benefit to this program is that individuals select the time periods and number of acres they would like to insure, leaving the payout potential in your hands. Better yet, there is no record-keeping required and no claims to submit. The policy is truly hands-off from an end-user point-of-view.
PRF insurance is subsidized up to 59 percent, making it very affordable – and there’s nothing due at signing. The application is simple and can quickly be taken care of by one of our in-house insurance experts.
You may be thinking that all that sounds great, but how will you know which acres to insure and for what times of the year?
Luckily, Texas Farm Credit has access to the most advanced analysis tool in the industry to help our customers make well-informed decisions. Our program looks at historical rainfall trends back to the 1940’s, so we are able to tailor-fit each policy to your budget, level of risk, and management goals, all while providing dependable coverage. Of course we can’t predict the future or what the weather has in store, but we can make informed decisions based on climatic trends and patterns – and that’s exactly what we’ll do for you.
Farmers and ranchers have various options to mitigate some of the inherent risks that accompany production agriculture – Pasture, Rangeland, and Forage insurance is definitely one to consider to protect your grazing or haying property against a dry spell.
Keep in mind, there is a signup deadline each year – usually in mid-November – for the following crop year. So, give us a call today and let’s talk about how a policy could work for you and your operation.