The sales closing date for the insurance is July 15 for crops planted in the fall, and Dec. 15 for crops planted next spring. The sales closing date is the last day to buy or make changes to a federal crop insurance policy.
According to the USDA, the rainfall index is designed to insure against a decline in an index value that is based on the long-term historical average precipitation for the same area for the same period. It does not measure, capture or use the actual crop production of any rancher or any of the actual crop production within the area.
Producers are able to divide their liability into two-month index intervals targeting when precipitation is important for the crop being planted.
The rainfall index uses National Oceanic and Atmospheric Administration (NOAA)Climate Prediction Centerprecipitation data. Each grid covers an area equal to 0.25 degrees in latitude by 0.25 degrees in longitude.
NOAA creates the grids, which do not follow state, county or national boundaries. Each grid is individually rated based on the data for that grid. The program is designed to insure against a decline in an index value that is based on the long-term historical average precipitation for the same area for the same period, according to USDA.
Index tables that provide historical information producers can use to decide whether this plan is right for them and a decision support tool are available on the USDA’s Risk Management Agency web site. FG
—From USDA news release
