Pasture and forage are the foundation of many Nebraska livestock operations, but they’re also one of the most vulnerable resources. Drought can quickly reduce forage production, forcing ranchers to buy expensive feed or reduce herd numbers.
One tool producers can use to manage this risk is USDA’s Pasture, Rangeland, and Forage (PRF) insurance. Unlike traditional crop insurance, PRF doesn’t ensure the actual forage you grow. Instead, it’s based on a rainfall index for your area. If rainfall falls below the long-term average during the months you select, you may receive an indemnity payment.
These indemnities are designed to help offset the added costs of purchasing hay, feed or other supplements when pasture growth is limited. In other words, PRF helps stabilize cash flow in dry years, giving ranchers more flexibility to maintain their herd and avoid making short-term decisions that can have long-term consequences.
Enrollment for PRF happens annually before Dec. 1, with coverage based on your county and your chosen grazing or haying months. While it doesn’t guarantee a profit, it is a valuable tool to include in your risk management plan, especially as weather patterns remain unpredictable.
For more information visit cap.unl.edu or talk with your local crop insurance agent. — Shannon Sand, Nebraska Extension
