How the weather has triggered payments for a lot of areas

What do you love about PRF? “No records to keep.” – Dale

At Midplains Ag, we've been thinking of what else we can share about PRF (pasture, range, forage) coverage. Today, we wanted to dig into how the weather has been for 2021 and how this can affect your PRF policy.

2021 Weather

June-July was dry this year and triggered payments for a lot of areas. July and August were more wet. The unfortunate part of the July and August rain was that they were large, but short-lived and had they not come this winter would be very different.


Images below show how quickly rainfall numbers can change.

Now, we're going to dive in a little more and discuss how a claim is determined, what the review process looks like for some insured, and will review the coverage levels and subsidies that go with them.

Only one cause of loss

When it comes to determining claims, there is only one cause of loss for PRF, which is lack of precipitation. This is why there are no records to keep on claims. The claim is determined strictly off NOAA weather data. The insured doesn’t have to do anything to receive their indemnity. That weather data is interpolated for each grid from area weather stations and RMA sets the final grid index. The final index is compared to the trigger index. If the final is less than the trigger an indemnity is due.

These indemnities are due to insured with in 60 days of the final grid index being set. It can take up to 3 months after the end of the interval to determine the final index because there is a lot of data to consolidate. For this reason, a June-July loss may not be paid until November or December.

Painless claim reviews

Some of our clients that have had losses are in the process of reviews. Reviews should be painless. The documents needed to prove eligibility for a PRF policy for a review are grazing livestock sale or purchase slips from a sale barn or depreciation schedules with the date of purchase for breeding stock, lease agreements in writing or proof of land ownership such as real estate taxes and 578s. Reviews can go quickly, even as soon as 5 business days after documentation is received by the AIP.

Coverage levels and subsidies

Just a friendly reminder that coverage levels and subsidies are shown below. A percent of productivity factor can also be chosen to increase or decrease your indemnity, starting at 150% and decreasing.

Call us if you would like a quote for your specific grid. We would also love to sit down and chat, so be sure to schedule an appointment online or give us at call 402-843-5342.

Sales closing deadline is December 1st if you are at all interested don't wait! Please give us a call today.

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