Colorado Cattle Rancher Mitigates Risk with PRF

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Louis Martin is partner and manager of Round River Resource Management (RRRM), which manages natural resources in collaboration with the Colorado State Board of Land Commissioners and the Nature Conservancy. Through RRRM, he runs cattle on the Brett Gray and Lyme BX ranches on the eastern Colorado prairie.

Though the ranches are only 60 miles apart they are subject to different weather patterns, for example, the Brett Gray Ranch went through severe droughts in 2011 and 2012.

“When we went through the drought, Pasture, Rangeland, Forage Insurance (PRF) was extremely helpful because we had to destock our numbers to about 40 percent of our normal carrying capacity and the proceeds we received from insurance helped compensate us for the reduced income from our cattle loss,” said Martin. In the summer, the Brett Gray Ranch typically carries 2,500 head of cattle; during the drought, they reduced the number to 1,000.

On the Lyme BX Ranch there are approximately 700 head of cattle. Martin feels some peace of mind knowing that should another drought occur, the PRF coverage will ensure at least a basic level of income.

“The way we have it set up we have coverage nearly the entire year so that if we do have a dry spell within the year, even though we may have adequate moisture at other times, we still have some coverage and protection,” said Martin.

Prior to forming RRRM, Martin worked on a ranch that also utilized PRF coverage, and he worked with Silveus Insurance Group agent Aaron Tattersall. Each year, Tattersall contacts Martin when it’s time to renew policies and goes through historical data on the ranches along with weather predictions and recommendations for the upcoming year.

“Aaron has been very easy to work with and is always willing to accommodate our schedule,” said Martin. “It’s been an easy process for us and I’ve recommended PRF to a number of other ranchers.”

Tattersall commended Martin for operating both ranches so well and for making good business decisions that keep the ranches profitable. “Louis is a great client and I really enjoy helping him make decisions that help manage his risk,” said Tattersall.