Pasture, Rangeland, Forage (PRF) Rainfall Index Insurance

Pasture, Rangeland, Forage (PRF) insurance helps livestock and hay producers manage the financial impact of low precipitation. PRF protects forage used for grazing or haying and provides coverage based on rainfall conditions within a designated geographic area.

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Benefits of Pasture, Rangeland, Forage (PRF) Rainfall Index Insurance

PRF provides protection for pasture, rangeland, and forage intended for grazing or haying. Flexible coverage options allow producers to customize protection based on their operation and local growing conditions.

Producers choose the specific intervals when precipitation is most important to forage production, helping align coverage with their operation's greatest weather-related risks.

PRF uses objective National Oceanic and Atmospheric Administration (NOAA) precipitation data to determine potential indemnities. Coverage is based on conditions across the entire insured grid rather than individual field or ranch performance.

PRF is available throughout the 48 contiguous states and Hawaii, helping producers access risk protection across a wide range of production regions.

How Pasture, Rangeland, Forage, and Rainfall Index Insurance works

Select coverage icon, representing the content below it.

Select Coverage

Choose the eligible pasture, rangeland, or forage acres to insure, along with a coverage level and productivity factor that reflects your operation's needs.

Select Intervals icon, this represents the content below.

Choose Index Intervals

Select the two-month intervals when precipitation is most important to forage growth and livestock production.

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NOAA Tracks Rainfall

Rainfall is measured using NOAA National Centers for Environmental Information (NCEI) data within designated geographic grids where insured acres are located.

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Receive an Indemnity When Rainfall Falls Short

If the final grid rainfall index falls below the selected coverage trigger during an insured interval, you may receive an indemnity payment based on the grid's performance.

Availability and Eligibility

PRF is available to owners, operators, landlords, and tenants who have an insurable interest in eligible pasture, rangeland, or forage acres. Documentation is required to verify ownership, lease agreements, or share arrangements.

PRF Coverage

Coverage is based on your selected acreage, coverage level, productivity factor, and index intervals. The selected intervals should represent the periods when precipitation is most important to forage growth.

  • Available coverage levels range from 70% to 90% in 5% increments.
  • Protection factors range from 60% to 150%.
  • Producers must select at least two index intervals.
  • Coverage can be allocated among available two-month intervals based on operational needs.

Calculating an Indemnity

In this Rainfall PRF example, assume the final grid index is 60, the County Base Value (CBV) is $9.60, the coverage level is 90%, the protection factor is 120%, and the trigger grid is 90. The insured has a 100% share.

CBV x coverage level x protection factor = protection

$9.60 x 90% x 120% = $10.37 per acre

(Trigger grid – final grid) ÷ trigger grid = factor (90-60) ÷ 90 = .333

.333 x $10.37 per acre x 100% = $3.45 per acre

The policy would pay an indemnity of $3.45 for each insured acre in this interval, based on the 100% share in this example.

Understanding the Rainfall Index

PRF uses a Rainfall Index (RI) to estimate precipitation within a specific geographic area known as a grid. NOAA precipitation data is used to determine whether rainfall within the insured grid falls below expected levels.

Because PRF is an area-based program, coverage is based on the performance of the grid rather than actual rainfall measured on an individual operation.

  • Each grid covers approximately 12 by 12 miles.
  • A final grid index is calculated after each insured interval.
  • An index of 100 represents average precipitation.
  • Values below 100 indicate below-average rainfall.
  • When the final grid index falls below the trigger grid index, an indemnity may be payable.

Index Intervals

Producers must select at least two non-overlapping index intervals and may allocate coverage among the following two-month periods:

  • January-February
  • February-March
  • March-April
  • April-May
  • May-June
  • June-July
  • July-August
  • August-September
  • September-October
  • October-November
  • November-December

System Tools

Our systems provide both daily and historical information to help you make the right insurance decisions. Talk to your agent about these tools today!

Historical Indices

Our quoting system features the ability to represent historical indices, indemnities, and 5, 10, and 20 year rate of returns for the policy (quote) all in one location. These values provide the ability to present a “what if” indemnity scenario based on a historical year being selected using the final index and indemnity associated with that year.

PRF Historical Data Estimated Index and Indemnity

Our Historical Data view, within our quoting system, allows you to see the estimated index and indemnity information for the interval that just completed. With this information, you can now see an estimate of how your policy will pay out for the applicable interval.

Current Estimated Rainfall

Stay up-to-date on your policy. Want to compare the current estimated rainfall index to the historical rainfall index? Or view your PRF Potential Indemnity? Our system offers these reporting features to keep you informed each day! Ask your agent for more information.

Contact an NAU Country Representative today about signing up!