How Does it Work?
Producers decide when coverage occurs by selecting two-month intervals.
The producer then chooses how much coverage to place on each insured interval.
Producers choose a coverage level.
Each coverage level has a corresponding subsidy level
When is the enrollment period? The PRF enrollment deadline is November 15th for the upcoming January-December coverage period.
- Historical rainfall data is converted into 100-value scale
- Actual rainfall amounts are totaled at the end of each 2-month interval
- Indemnity is calculated if actual rainfall amount is less than the selected coverage level
- Must total 100%
- Minimum of two intervals must be selected
- No overlapping intervals (ex: Jan-Feb, Feb-Mar)
- Maximum Percent of Value allowed (state specific)
- Minimum Percent of Value allowed (10%)
XYZ Ranch selects the 90% coverage level and insures the April-May interval. Actual precipitation for April-May totals 80% of expected rainfall. XYZ Ranch will receive an indemnity for the 10% shortage.