When it rains, it pours. Except when it doesn't.....
Insure up to 90% of normal rainfall on your grazing or hay land.
Grazing acres can be both native and improved, but must be 1) grazeable and 2) perennial.
Policies operate on results generated by a Rainfall Index.
Rainfall Index (RI) - is based on weather data collected and maintained by the National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC). The index reflects how much precipitation is received and reported via 3 components:
- Grid – Rainfall is reported in a grid that is 0.25 degrees in latitude by 0.25 degrees in longitude, which translates to approximately 17 by 17 miles at the equator. It does not matter where in the grid your property is located because the entire grid gets the same result. Results are not based off an insured’s personal rain gauge.
- Interval – An interval is a 2-month period. You must select between 2 and 6 intervals you want to insure. Intervals cannot share a common month.
- % of Historical Average – Rainfall is reported as a percentage of the historical average for specific grid and interval.
Policyholders can select a coverage level from 70 to 90 percent of the historical average rainfall, a productivity factor from 60 to 150 percent of the county value for the crop, and decide which intervals to insure. Insured acres are distributed across the chosen intervals. The producer is insuring a rainfall index that is expected to estimate the value of production with normal precipitation.
Haying acres can be both native and improved, but must be 1) hayable and 2) perennial.
The value of hay per acre is of course much higher than grazing, however all other aspects of the policy function the same.
The Annual Forage program provides coverage to acreage that is planted each year (not perennial) to a forage crop that is used as feed and fodder by livestock. This pilot program utilizes the Rainfall Index to report precipitation and functions very similarly to PRF.