Rainfall Index Insurance Policies

Rainfall Index insurance policies insure crop producers through plans including Pasture, Rangeland and Forage (PRF), Annual Forage (AF), and Apiculture (API). Rainfall Index insurance plans are considered to be group policies, meaning individual losses are not covered. Rainfall Index (RI) is based on weather data collected and maintained by the National Oceanic and Atmospheric Administration’s Climate Prediction Center. The index reflects how much precipitation is received relative to the long-term average for a specified area and timeframe.

The Rainfall Index (RI) plans of insurance are designed as risk management tools to insure against declines in an index in a designated area called a grid. These RI insurance policies are intended for use by growers whose crop production follow the average precipitation patterns for that specific grid. It is possible for you to have low crop production on the acreage in the grid you insure and still not receive a payment under these plans. The Rainfall Index (RI) insurance program is designed for producers whose crop production is similar to average patterns and not individual crop production, because of this, a policyholder should review the historical indices, additional tools, and information provided to determine if these programs are suitable for their specific risk management needs.