Pasture, Rangeland Forage Rainfall Index Insurance

1. Pasture, Rangeland Forage Rainfall Index Insurance • Insures the average rainfall in a 12 mile x 12 mile grid area as set up by program • Choose area where rangeland is located and use grid Number for all land within that grid Use this website to determine grids http://agforceusa.com/rma/ri/prf/maps

2. Pasture, Rangeland Forage Rainfall Index Insurance • If land goes across grid line contiguously then you can insure all land in either grid or split the land up according to the number of acres in each grid. • You can insure some or all of your range and hay land

3. Pasture, Rangeland Forage Rainfall Index Insurance • There are eleven insurance intervals These periods are two month periods that you decide how to put together… You can choose to use Jan-Feb, March April or you can use Feb March and April May until you have two up to six periods chosen to insure You may normally insure up to 50% in one Interval and a little as 10% in one interval

4. Pasture, Rangeland Forage Rainfall Index Insurance You can lump together your months as you choose such as this: Jan-Feb, April-May, July-Aug, Sep-Oct or Feb- Mar, May-June, July-Aug… Or whatever combination you choose as long as the months are consecutive…

5. Pasture, Rangeland Forage Rainfall Index Insurance • Coverage Levels range from 70%, 75%, 80%, 85% and 90% of normal rainfall as determined by NOAA (National Oceanographic and Atmospheric Administration) • The rainfall measurement method is the OI Interpolation method. It is different than what it was when the program began. • Protection factor starts as low as 60% and goes up to 150% in 1% increments

6. Insurance example • 1000 acres of rangeland • Grid ID is 15123 (near Albany) • County Base Value is $9.53 • Coverage level is 90% • Protection Factor of 150% is chosen • Coverage = $9.53 x 90% x 150% =$12.87/acre

7. Each interval had 166.7 acres insured in it • Each interval had $12.87/acre x 166.7 acres = $2145 coverage • Total coverage = $2145 x 6=$12870/year • Loss is worked as follows: (Coverage level- final grid index)/ Coverage level= Calculation factor Calculation Factor x Interval liability = indemnity If final grid index = 50% then loss is (90%-50%)/90%=.4444 .4444 x $2145=$953 indemnity for Interval I

8. Frequently Asked Questions • What if I receive less rain than my neighbors in the grid? The indemnity is paid on the average…You may have no rain while your neighbors have a lot. You may not get paid. You may have a lot of rain but the average in the grid is low so you would get paid.

9. Frequently Asked Questions • May I insure hay grazer? No, you can insure permanent pasture and hay fields. The grass or hay field must be seeded by July 1 to be eligible for insurance the following year which starts Feb 1 • Is CRP insurable? No, the grass must be intended for use as grazing or hay. CRP is not intended for that even though in emergencies you can do that to CRP.

10. Frequently Asked Questions • When is my premium due? Premium billing date is July 1. If any of the intervals have a loss then your premium will be deducted from the loss. When do I decide what to insure in each interval and when is sales closing? Sales Closing Date is September 30 Acres Reporting isNov 15.

11. Frequently Asked Questions • How can I determine if this will work for me? This program uses NOAA numbers to determine the averages. They may or may not track well for you. To see if the numbers are accurate enough for you to use for drought insurance for your land go to: http://agforceusa.com/rma/ri/prf/maps go to Decision Support Tool on the left and see if the numbers in the history work with your land. Some people feel that the numbers are accurate for their land while others do not.