Drought Insurance

[City Guy]

Is there such as thing as drought insurance? How does it work? Is it worth it?

 

[bird dog]

Google USDA PRF insurance programs. Like all insurance, its worth it if you need it.

 

[JMJ Farms]

Only thing is that the PRF insurance is simply a guess on which months in the upcoming year will have below average rainfall in the particular area you elect to insure. No rhyme or reason. It's simply a guess. You can only insure a two month period. Be a lot more appealing if it was for a complete growing season or complete year.

 

[Limepro]

I have this insurance. You can take it for a whole year or you can pick two month blocks.Your payments are calculated in 2 month intervals based on average rain fall. I've taken it the last five years. This will be the first year that it that it's going to pay any major amount of money. The good thing I can tell you is that it hasn't cost me much money the other years. My premium is about 14,000 a year and is due September the fifteenth. Any payment for rain shortages for months prior to that go towards paying your premium. I think I've owed money twice come September and it wasn't much then. After the phone call I had with my agent last week I'm looking forward to opening the check in the mail when it gets here. I would highly recommend this program. Hope this helps.

 

[aaroninga]

I read about it in the last issue of progressive forage, a free magazine by the way.
If I remember right it is based on a grid system of about 15x15 miles. So it can rain 5-10 miles from you in the grid and you not get any but also not get any benefit.
I didn't go to the website to check on it because of my small herd and small acreage.

 

[js1234]

Lots of guys, us included have been buying it out here for 4-5 years now. Has been a very profitable investment.