If you run livestock or produce hay, you already know the real risk isn’t always a big, dramatic weather event.
Sometimes it’s just… no rain.
When precipitation falls short, forage production drops, feed costs climb, and margins get tight fast. That’s exactly the kind of scenario PRF insurance (Pasture, Rangeland, Forage insurance) is built for.
Think of PRF as a tool that helps you manage rainfall risk—one of the most unpredictable (and hardest to control) parts of your operation.
In this guide, we’ll walk through:
- What a PRF policy actually is
- How PRF insurance works (in plain English)
- What it covers—and what it doesn’t
- How to build a smarter PRF strategy
What is PRF Insurance?
At its core, PRF insurance is rainfall insurance.
It’s a federally supported program through the USDA Risk Management Agency (RMA) that protects against below-average precipitation using NOAA data.
Here’s the important part:
- A PRF policy doesn't look at your actual forage production
- It looks at how much rain your area received compared to normal
So instead of insuring yield like traditional crop insurance, PRF insures the conditions that drive your yield.
Who is PRF Insurance For?
PRF works best for operations that depend heavily on natural forage:
- Cow-calf producers
- Stocker/backgrounding operations
- Hay producers
- Grazing-based livestock systems
If your business depends on rainfall to grow feed, PRF insurance is worth a serious look.
How PRF Insurance Works
PRF breaks the year into six two-month windows, called intervals:
- Jan–Feb
- Mar–Apr
- May–Jun
- Jul–Aug
- Sep–Oct
- Nov–Dec
You get to pick which of those windows matter most to your operation and that’s where strategy comes in.
Setting Up a PRF Policy
Here’s what you decide when building your policy:
1. Your Coverage Area (Grid)
Your land is assigned to a rainfall grid (about 17 x 17 miles). Everything is based on how that grid performs.
2. Coverage Level
You choose a trigger point (70%–90%).
Higher coverage = easier to trigger a payout.
3. Productivity Factor
This adjusts how much value you’re insuring per acre.
4. Interval Allocation
You spread your coverage across the months that matter most.
A Quick Example
Let’s say:
- You insure May–June at 90%
- Normal rainfall index = 100
- Actual rainfall index = 70
Because rainfall dropped below your 90% trigger, your PRF policy pays out.
No adjusters. No paperwork. Just a data-driven payment.
What PRF Insurance Covers (and What it Doesn’t)
What it Does Cover
- Below-average rainfall
- Drought conditions
- Reduced forage production tied to lack of rain
What it Doesn't Cover
- Your actual yield or production
- Grazing decisions or management
- Flooding or too much moisture
- Price changes or livestock losses
Important: PRF insurance protects your forage, not your livestock prices. To cover the value of your animals, work with one of our livestock insurance specialists to see how policies like Livestock Risk Protection (LRP) can help guard against market swings.
Why Producers Like PRF Policies
It's Simple
No yield histories. No field inspections. No claims process. It's all based on rainfall data.
It's Predictable
You can track rainfall trends, grid performance and potential payouts as a producer.
It's Flexible
You get to build a policy that fits your operation:
- When you need coverage
- How much protection you want
- How you spread risk across the year
Building a Better PRF Strategy
1. Focus on the Right Months
Ask yourself: When does rain actually matter most for my forage production? That's where your coverage should go.
2. Choose the Right Coverage Level
- 70-80% - lower premium, less frequent payouts
- 85-90% - higher premium, stronger production
3. Think in Terms of Real Costs
Use the productivity factor to match:
- Feed replacement cost
- Hay prices
- Your true financial exposure
4. Don't Put Everything in One Interval
Rain is unpredictable. Spreading coverage across multiple intervals smooths risk and improves payout consistency.
Want help running the numbers? Connect with one of our insurance agents to model different scenarios and see what works best.
Where PRF Fits in Your Operation
PRF works best as part of a bigger plan, alongside things like:
- MPCI or Annual Forage coverage
- Livestock Risk Protection (LRP)
- Feed purchasing strategies
- Drought contingency plans
A Few Common Mistakes to Avoid
We see these all the time:
- Putting too much coverage in one interval
- Insuring the wrong months
- Ignoring historical rainfall trends
- Undervaluing your forage
- Treating PRF as “set it and forget it”
A little planning goes a long way here.
PRF insurance isn’t about eliminating risk—it’s about making it manageable.
When rainfall doesn’t cooperate, a well-designed PRF policy can:
- Help stabilize your costs
- Protect your forage base
- Reduce year-to-year volatility
And in an unpredictable environment, that kind of consistency matters.
When the weather is unpredictable, work with an insurance team who is. Start a conversation with one of our insurance team members today to get the peace of mind you deserve.
Farm Credit Mid-America is an equal opportunity provider.
