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What are some of the basic concepts of the Rainfall Index Pasture, Rangeland, Forage (RI-PRF) Insurance Program?

April 26, 2017BASIC concepts forage index Insurance Pasture program rainfall rangeland

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What are some of the basic concepts of the Rainfall Index Pasture, Rangeland, Forage (RI-PRF) Insurance Program?

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The Rainfall Index is an area-based plan of insurance, and is based on a National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC) interpolated rainfall data set and uses an approximate 12-mile square grid. Producers must select at least two, two-month time periods in which precipitation is important for the growth and production of the forage species. These time periods are called Index Intervals. Insurance payments to a producer are calculated based on the deviation from normal precipitation interpolated to the grid and index interval(s) selected. This insurance coverage is for a single peril – lack of precipitation. It is critical that producers review the historical indices for their grid ID to determine how well the past results correspond to their past observations.