Rainfall Index (RI) – This plan of insurance is based on weather data collected and maintained by NOAA’s Climate Prediction Center. An index value is generated for separate grids, approximately 12 x 12 miles, over 2 month time intervals. The insured is protected from a decline in this index relative to the long term historical average. Their coverage will be based on the interval periods selected (2 minimum) to be insured, and the amount of coverage desired. The selection of the time intervals is critical to this policies effectiveness and benefit to the insured. Coverage is NOT based on individual producer’s actual rainfall, but on the index for each grid.
The PRF Analysis software analyzes enormous amounts of historical data and helps you customize your coverage to better insure your operation.
PRF products must be purchased by sales closing date of December 1st. The Acreage Reporting Deadline is December 1st.
Livestock Risk Protection (LRP) insurance is a price protection policy designed for feeder cattle, fed cattle, and swine. It’s a price risk management strategy supervised by the USDA Risk Management Agency.
LRP’s primary function is to set a minimum selling price, safeguarding producers from severe price drops that might result from events like disease outbreaks, droughts, pandemics, or other industry disturbances. Nevertheless, it also permits producers to gain from rising prices.
This program, however, does not cover any production-related risks, including mortality, condemnation, physical damage, disease, individual marketing choices, local price anomalies, or any other loss causes.
To be eligible for LRP insurance, the livestock must be owned by the producer or a family member, and ownership should be retained until 60 days before the Specific Coverage Endorsement (SCE) end date for the insurance to remain effective. It’s not mandatory to sell the livestock to receive an indemnity payment; there are no restrictions on marketing the livestock after the SCE end date.
New producers looking to enrol in an LRP policy can submit their application at any point during the reinsurance year (unlike crop insurance and PRF, which have specific deadlines). After the application is submitted and approved, the producer is then eligible to buy coverage by acquiring a coverage endorsement at any time throughout the year.
However, for the Livestock Risk Protection (LRP), Livestock Gross Margin (LGM), and Dairy Revenue Protection (DRP) insurance programs, producers must meet the June 30 deadline for transferring or cancelling their policies before the commencement of the new reinsurance year. Should a producer decide to change their agent, opt for a different insurance company, or terminate their policy for the forthcoming year, they need to complete and sign the transfer/cancellation form by this deadline.
