As another Texas winter approaches, ranchers are looking ahead to 2026 with a mix of optimism and caution. Rainfall has been unpredictable, costs are up, and cattle prices remain strong. With so many moving parts, now is the time to tighten up your risk plan. There are sevearl beneficial tools, but two to keep in mind are Pasture, Rangeland, and Forage (PRF) insurance and Livestock Risk Protection (LRP) insurance.
The PRF sales deadline is December 1, and it is one date every rancher should have circled on the calendar.
Why PRF Insurance Is Worth Considering
In Texas, rainfall is rarely consistent. Some years pastures stay green all season; other years they dry out far too soon. PRF insurance helps smooth out those ups and downs by paying when rainfall in your area falls below normal.
https://agrilife.org/agecon/pasture-rangeland-and-forage-insurance-deadline-is-coming-soon/
PRF uses rainfall data from the National Weather Service for a 17-mile grid that covers your ranch. You choose which two-month periods are most important, such as March-April or May-June. If rainfall during that time is below the long-term average, you receive a payment.
The Benefits
- Helps with cash flow. If you need to buy hay or feed because of dry weather, PRF can help offset the cost.
- Protects land and herd. Payments can reduce pressure to overgraze or sell in drier periods.
- Customizable to fit your needs. You select the coverage level (usually between 70 and 90 percent) and the months that fit your grazing plan. Depending on coverage selections, subsidies from USDA vary to assist in offsetting the premium cost.
Important Dates
- Sign-up deadline: December 1
- Premium due: typically by late fall of the following year
- Payouts: usually within two to three months after the insured rainfall period ends
For many ranches, PRF has become as standard as fertilizing or vaccinating for most ranchers as part of risk management. It is a typical part of operating in a state where the weather does not always cooperate.
Why It’s Time to Look at LRP Too
If PRF helps protect your grass, LRP helps protect your cattle prices. It is a price-insurance program that provides a “floor” for your livestock while allowing you to benefit if prices rise.
You decide how many head to cover, what weight you expect to sell, and your target sale date. If prices drop before that date, LRP pays the difference between your insured price and the actual market price.
Why LRP Makes Sense
- Cattle prices are high. That creates more profit potential but also more risk if prices fall.
- Flexible coverage. You can match coverage to your marketing date, from a few months up to a year.
- Simple and affordable. Premiums are subsidized up to 55 percent, and there are no margin calls or futures accounts required.
LRP is especially helpful for cow-calf and backgrounding operations that want price protection without the complexity of market hedging.
A Smarter Way to Manage Risk
PRF and LRP work well together. PRF helps when dry weather drives up your feed costs. LRP helps when cattle prices drop before you sell. Combined, they protect both sides of your operation: your pasture and your paycheck.
At BentOak Capital, we take a comprehensive approach to wealth management that brings together the many disciplines influencing your financial well-being. Our advisors understand that true asset management extends beyond traditional portfolios to livestock, crops, equipment, real estate interests, and ownership in a business. Our mission is not to predict the weather or the markets, but to help you build a well-structured financial plan supported by trusted professionals and strategies designed to protect what you have built.
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