PRF Rainfall Index Analysis

PRF is area-based rainfall insurance for grazing and hay land. Your location falls in a specific NOAA weather grid. You choose 2 to 6 two-month intervals to insure, the periods when drought would hurt your operation most. If the rainfall index for your grid drops below your coverage level during those intervals, you may receive an indemnity payment. No individual loss documentation is needed.

Key facts:

• Choose 2 to 6 two-month intervals (Jan-Feb, Feb-Mar, Mar-Apr, etc.)
• Coverage levels: 70-90% of expected rainfall
• Federal premium subsidy: 51% at 90% coverage, up to 59% at lower levels
• Productivity factor: adjustable from 60-150% of county base value
• Allocate coverage weights across intervals (must total 100%)
• Enrollment deadline: typically December 1 for the following crop year
• Triggers are grid-based, not your individual ranch rainfall

Example: A 1,200-acre ranch at county base value of $8/acre, 90% coverage, 100% productivity factor, insuring 960 acres (80%). Premium after subsidy might be $1,500-$3,000/year. If July-August rainfall drops to 40% of normal, indemnity could be $4,000-$8,000.

How to use this tool: Select your state, county, and grid. The tool shows 78 years of historical rainfall data for each two-month interval. Look for intervals that trigger frequently at your chosen coverage level, those are the ones to insure. Print the results and take them to your crop insurance agent.

PRF works alongside disaster programs. You can have PRF on your grazing land AND file for LFP when drought hits, different triggers, both may pay for the same drought event.