PRF is based on insuring a percentage of the average rainfall in your area. For example, you may be insuring 75% of an average April-May rainfall of 1.8” in Brewster county, while others select 75% of a 5.1” average in Uvalde county.

Rainfall coverage is available for up to six, two month periods throughout the year.  Claims are calculated and paid within 50 days of the end of each two-month period.This immediate relief helps cover increasing feed costs throughout the year.

The premium and potential claims of each two month period are calculated and maintained separately.  For example, an 8” rain in August has no impact on the other 10 months of the year.

Because of government subsidies, it generally requires only ONE two-month period receiving 40% of average rainfall to cover the premium for the ENTIRE year.  Claims for Oct/Nov, 2007, exceeded $1.30 per acre in several areas of Texas.

You can easily adjust premium and coverage to meet your needs.  Ranchers may insure between 70-90% of average rainfall at 60-150% of a predetermined value of rain on grazingland or hayland

in your area.

The value of rain on hayland (perennial grasses that could be baled) can be valued at roughly 12X that of normal grazingland.

It’s simple.  There are no record keeping or reporting requirements. Claims are automatically calculated and paid once the National Weather Service finalizes the actual rainfall for the previous two month period.

There are no gross income or payment limits.