Coverages | MPCI | PRF

About Pasture, Rangeland, and Forage Rainfall Index and Vegetative Index Coverages

• This risk management tool insures against widespread loss of production of the insured crop in a designated area called a Grid. Coverage is based on the experience of a Grid rather than individual farms.
• Coverage under both programs is available for two crop types: Grazingland and Hayland. Losses are paid when the Grid’s accumulated index, the Final Grid Index, falls below the insured’s Trigger Grid Index.
• The program does not provide hail and fire exclusion, high-risk land, late planting, replant requirements, replanting payments, prevented planning, or experience adjustment factor payments.

Levels of Coverage and Productivity Factors

• The grower selects a different coverage level and productivity factor for each of the insured crop types in the county.
• The Expected Grid Index shown on the actuarial documents multiplied by the selected coverage level is the Trigger Grid Index.
• CAT is not available. Coverage levels are available from 70% to 90%, in 5% increments.
• Productivity factors allow individualization of coverage based on the productivity of the crops produced and may be selected from 60% to 150%, in 1% increments.

Important Dates

The sales closing date and acreage reporting date is November 30 preceding the start of the crop year. The contract change date for all states and counties is August 31.

Units

A coverage unit is all insured acres within a Grid ID for each crop type and index interval.

How It Works

The coverage is based on a Dollar Amount of Protection per Acre. The actuarial will contain the County Base Value per Acre, by crop type.

• County Base Value = $17.65 - Published in the county actuarial, by crop type
• Coverage Level = 85% level - Elected by the grower
• Productivity Factor = 120% - Grower selects a number between 60% and 150%
• $17.65 x .85 x 1.20 = $18.00 is the Dollar Amount of Protection per Acre
• One Dollar Amount of Protection per Acre will apply to all insured acres by crop type for the county.

Grid ID

The Grid ID #, where the insured crop land is located, is determined by using the RMA website. The Grid is utilized to determine the expected Grid Index and the Final Grid Index which is used in premium and loss calculation. The Grid ID # will be reported on the Acreage Report.

• Rainfall Grid: Acreage within each 12 x 12 mile (0.25 degree) gridded area, established by NOAA and identified by longitude and latitude.
• Vegetation Grid: Acreage within a 4.8 mile x 4.8 mile (8 km) gridded area, established utilizing EROS NDVI data and identified by longitude and latitude. Vegetation is measured indicating the density of biomass on the ground via satellite imagery

Loss Payments

• Indemnities are based on the deviation from normal for each Grid.
• A payment may be made only if the Final Grid Index for the insured unit is less than the grower’s Trigger Grid Index.
• The payment will be equal to the payment calculation factor multiplied by the policy protection per unit. Crop-Hail coverage provides protection against physical damage from hail and/or fire. Other coverages provided include fire department service charges, transit coverage to the first place of storage, catastrophe loss award (most coverages) and replanting coverage (most crops). Options exist in some areas for other perils such as wind and theft.

Index Intervals

The insurance period is determined by the “Interval” selected by the insured. The county actuarial may contain minimum/maximum limitations on the percentage of acreage that may be insured in any one interval.

• Vegetation Index Interval Periods
  The crop year begins April 1 and ends March 31 of the following year.
  • Interval 1 April through June
  • Interval 2 July through September
  • Interval 3 October through December
  • Interval 4 January through March
• Rainfall Index Interval Periods
  The crop year begins February 1 and ends January 31 of the following year.
  • Interval 1 February through March
  • Interval 2 April through May
  • Interval 3 June through July
  • Interval 4 August through September
  • Interval 5 October through November
  • Interval 6 December through January

A minimum of TWO intervals per crop year must be insured under the Rainfall Index program.

Program Availability

Index	State	County Availability
Rainfall Index	Alabama	All Counties
	Colorado	Adams, Arapahoe, Baca, Bent, Cheyenne, Crowley, Ebert, El Peso, Kiowa, Kit Carson, Las Animas, Lincoln, Logan, Morgan, Otero, Phillips, Prowers, Pueblo, Sedgwick, Washington, Weld, and Yuma
	Idaho	Bannock, Bear Lake, Bingham, Bonneville, Caribou, Cassia, Franklin, Gooding, Jefferson, Jerome, Madison, Oneida, Owyhee, Power, and Twin Falls
	Missouri	All Counties
	Montana	All Counties
	North Dakota	Adams, Billings, Bowman, Burke, Burleigh, Divide, Dunn, Emmons, Golden Valley, Grant, Hettinger, Logan, McIntosh, McKenzie, McLean, Mercer, Morton, Mountrail, Oliver, Sioux, Slope, Stark, Ward, and Williams
	Pennsylvania	Allegheny, Armstrong, Beaver, Butler, Cambria, Clarion, Clearfield, Fayette, Greene, Indiana, Jefferson, Lawrence, Mercer, Somerset, Venango, Washington, and Westmoreland
	South Carolina	Abbeville, Anderson, Cherokee, Chester, Edgefield, Fairfield, Greenville, Greenwood, Lancaster, Laurens, McCormick, Newberry, Oconee, Pickens, Saluda, Spartanburg, Union, and York
	Texas	Andrews, Bastrop, Bell, Bosque, Brewster, Calhoun, Clay, Coryell, Fayette, Foard, Hardeman, Hood, Howard, Jackson, Kent, King, Lavaca, Loving, Martin, Montague, Parker, Pecos, Scurry, Somervell, Ward, Wichita, Wilbarger, Williamson, Winkler, Wise and all counties south thereof.
Vegetative Index	Colorado	Archuleta, Delta, Dolores, Garfield, Hinsdale, La Plata, Mesa, Mineral, Moffat, Montezuma, Montrose, Ouray, Rio Blanco, San Juan, and San Miguel
	Kansas	All Counties
	Nebraska	All Counties
	New York	Allegany, Broome, Cattaraugus, Chatauqua, Chemung, Chenango, Cortland, Delaware, Greene, Schoharie, Steuben, Sullivan, Tioga, Tompkins, and Ulster
	North Carolina	All Counties
	Oklahoma	Atoka, Beaver, Beckham, Blaine, Bryan, Caddo, Canadian, Carter, Choctaw, Cleveland, Coal, Comanche, Cotton, Custer, Dewey, Ellis, Garvin, Grady, Greer, Harmon, Harper, Hughes, Jackson, Jefferson, Johnson, Kiowa, Lincoln, Love, Major, Marshall, McClain, Murray, Okfuskee, Oklahoma, Pittsburg, Pontotoc, Pottawatomie, Pushmataha, Roger Mills, Seminole, Stephens, Tillman, Washita, Woods, and Woodward
	Oregon	Baker, Crook, Grant, Harney, Lake, Malheur, Union, Wallowa, and Wheeler
	Pennsylvania	Bradford, Lackawanna, Luzerne, Pike, Sullivan, Susquehanna, Tioga, Wayne, and Wyoming
	South Carolina	Allendale, Bamberg, Beaufort, Berkeley, Charleston, Colleton, Dillon, Dorchester, Florence, Georgetown, Hampton, Horry, Jasper, Marion, Orangeburg, and Williamsburg
	South Dakota	Bennett, Butte, Corson, Dewey, Haakon, Harding, Jackson, Jones, Lyman, Meade, Mellette, Perkins, Shannon, Stanley, Todd, and Ziebach
	Virginia	All Counties
	Wyoming	All Counties

NOTE: This summary is for general illustration only. See policy for program details.

08/01/2008