Frequently Asked Questions (FAQs)

The biggest difference between PRF insurance and the FSA programs is that PRF insurance is offered as an insurance product, in which the producer is responsible for a premium. 

The FSA disaster programs are aid programs, in which there is no input from the producer. These programs require the producer to meet certain criteria and fill out the necessary paperwork. After doing so, the producer may or may not receive the needed funds.

It is worth noting that the funds from most FSA offices are often issued after the need arises. Indemnities from PRF insurance are often available about 60-90 days after the interval ends.

Pasture, Rangeland, and Forage (PRF) insurance is often informally referred to as rainfall insurance or drought insurance because ranchers utilize the coverage to protect their profits from the impact of below-average rainfall.

You can complete your PRF insurance sign-up and application process in three easy steps. 

• Contact a Redd Summit Agent by submitting this online form, by calling (435) 625-1022
• Complete a 5-minute application
• Lock in your coverage

The deadline to sign an application for a 2024 PRF insurance policy is December 1, 2023.

The Government on PRF insurance is dependent on your chosen coverage level. 

• 90% coverage has a 51% subsidy
• 85% to 80% coverage has a 55% subsidy
• 75% to 70%  coverage has a 59% subsidy
• Your coverage level refers to the percentage of normal rainfall that you’re PRF policy insures.

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Your PRF insurance indemnities will hit your mailbox when: 

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• Your PRF insurance premium is paid in full.
• Your insured grid(s) receive less rainfall than your chosen coverage level (70%-90% of the 70-year average) during one of your insured intervals. 

‍Remember: PRF insurance is self-funding. Indemnities are credited to your premium balance first. Once the balance is paid in full, any additional indemnities are issued directly to you.

Cattle futures are CTFC-regulated, exchange trade contracts on the Chicago Mercantile Exchange (CME) that enable ranchers to protect their profit margins from declines in the cattle market by selling their livestock on a contractual basis. This means that a producer can sell their livestock at today’s price for their anticipated weight, but physically transfer ownership months down the line.

You can find Live Cattle (LE) prices on the Nasdaq.

Cattle prices fluctuate year to year, but February and March are traditionally the best times to sell calves.

You can invest in cattle futures by creating an account with the futures exchange through your broker and depositing the correct margin. Then you can start trading cattle futures contracts.

Coverage begins on January 1 and is allocated throughout the calendar year based on the historic rainfall data in your area.

Pasture, Rangeland, and Forage (PRF) is rainfall insurance. It protects your land from rainfall volatility and triggers indemnity payments when rainfall in your area is lower than average.

Livestock grazing is the most common use of rangeland. It is also the main management tool to maintain forage production and soil health.

Pasture, Rangeland, and Forage insurance protects your grazing land from losses due to rainfall volatility.

The main difference between pasture and rangeland lies in whether or not the grasses grown on the land are domesticated or native to the area. According to the EPA, pasture includes “lands that are primarily used for the production of adapted, domesticated forage plants for livestock”, while rangelands are primarily made up of grasses that are natural and native to the area.

No, crop insurance through PRF coverage protects you from rainfall volatility, not drought conditions.

LRP insurance through Redd Summit Advisors is available for the prices on fed and feeder cattle and feeder calves that haven’t hit the ground yet.

Because LRP insurance is self-funding, you’ll only owe a premium if the market prices rise above your floor price, or if your indemnity does not cover the balance in full. Premiums are not due until 30 days after the end of the endorsement period and are tax-deductible.

The prices insured through LRP insurance are based on the USDA’s Agricultural Market Service, which is updated almost daily.

The premium on your LRP policy varies depending on your operation. However, the USDA subsidy makes the US Government responsible for a portion of your premium. However, if the market price drops during your endorsement and your indemnities cover the premium in full, any additional payments go straight to you with no up-front or out-of-pocket cost.