Products & Services

Pasture, Rangeland and Forage (PRF) Insurance
Sales Closing SEP. 30

PRF Overview
The Pasture, Rangeland and Forage policy (PRF) is a FCIC reinsured risk management tool offered by through Windmark for farmers and ranchers who rely on pasture, rangeland, or forage for haying and/or grazing. It offers coverage for a significant reduction in either the vegetative index or rainfall amount in a given geographic area (or grid) containing the insured property.

Both grazing land and hay land utilized for forage production may be insured. The policy is based on the experience of each grid to determine indemnities rather than individual farms or ranches. It indemnifies the insured in the even a grid's accumulated index (either vegetative or rainfall) is below the insured's "trigger grid index" for the period of insurance. This coverage is offered for landlords and tenants, as well as an owner/operators.

PRF Availability
Texas (rain), Oklahoma (rain), Colorado (both), North Dakota (rain), South Dakota (veg.), Pennsylvania (rain), South Carolina (rain), Idaho (veg.) and Oregon (veg.).

PRF Coverage Levels
Levels of coverage are 70, 75, 80, 85 or 90% with premium rates stated in dollars per one-hundred dollars of protection.

PRF Definitions
TRIGGER GRID INDEX - will equal the coverage level selected.

Final Grid Index
FOR RAINFALL it will be determined by FCIC based on the NOAA's current .25 degree grid precipitation data for each grid ID and index interval during the crop year, expressed as a percentage.
FOR VEGETATION it will be determined by the FCIC based on the current NDVI values for each grid ID and index interval during the crop year expressed as a percentage.

NOAA - National Oceanographic and Atmospheric Administration

EROS - Earth Resources Observation System, or a successor agency, that provides NDVI data that is used to calculate the NDVI gridded data.

NDVI - Normalized Difference Vegetation Index, which is a measure indicating the density of photosynthetic biomass on the ground, resulting from the processing of satellite imagery.

POLICY PROTECTION PER UNIT - The result of multiplying the dollar amount of protection per acre, by your insured acres, by your share for the unit.

Rainfall Indexing Methodology
The Rainfall Index is based on the National Oceanic and Atmospheric Administration (NOAA) rainfall data is in a 12 x 12 mile grid. You must select at least two, 2-month time periods where rain is important to operation in your area. These time periods are called "index intervals."

Indemnity Example for Rainfall
At the end of the insurance period, the FCIC issues a final grid index for the insured grids. A payment is made only if the final grid index for the insured unit is less than the trigger grid index, regardless of the individual's actual precipitation in that index interval.

So, if the final grid index is 50 and the trigger grid index selected was 85, the indemnity is calculated as follows assuming the insured owns 100% of the acreage:

PAYMENT CALCULATOR FACTOR:
(85-50) = .412
85
INDEMNITY PAYMENT:
.412 x $1000 = $412.00

Vegetation Indexing Methodology
The Vegetation Index, which utilizes remote sensing to indicate productive capacity in a 4.8 x 4.8 mile grid. You must select at least one interval period per year.

With this insurance plan, you may select one or more 3-month time periods that represent your pasture, rangeland, or forage practices. These time periods are called "index intervals." Coverage is based on losses within the 4.8 x 4.8 mile grid rather than on an individual producer's losses. Losses for the Vegetation Index are paid based on the difference between normal NDVI data (expected grid index) and the actual grid index experience during the index interval(s) you have chosen to insure. When the final grid index falls below your "trigger grid index" (coverage level times the expected grid index), you may receive a loss payment.

Indemnity Example for Vegetation
At the end of the insurance period, the FCIC issues a final grid index for the insured grids. A payment is made only if the final grid index for the insured unit is less than the trigger grid index, regardless of the individual's actual precipitation in that index interval.

So, if the final grid index is 45 and the trigger grid index selected was 75, the indemnity is calculated as follows assuming the insured owns 100% of the acreage:

PAYMENT CALCULATOR FACTOR:
(75-45) = .400
75
INDEMNITY PAYMENT:
1400 x $1000 = $400.00

PRF Indemnity
At the end of the insurance period FCIC issues a final grid index. A payment is made if the final grid index for the insured unit is less than the trigger grid index.

Calculating Indemnities
PAYMENT CALCULATION FACTOR:
(trigger grid index - final grid index)
trigger grid index

INDEMNITY PAYMENT:
Payment calculation factor x Policy Protection per unit

Precip Analysis - Link to http://www.srh.noaa.gov/rfcshare/precip_analysis_new.php

Windmark Crop Insurance
5219 CITY BANK PARKWAY
LUBBOCK, TX 79408
1-800-687-2265
www.citybankonline.com

 

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