A Risk Management Agency Fact Sheet 

Rainfall Index Pilot Program

November 2010 Program 

Aid 2005 

United States 

Department of 

Agriculture 

The Risk Management Agency is now offering 

pilot Basic Provisions for the Rainfall Index. 

These Basic Provisions replace the Group Risk 

Plan Basic Provisions for Rainfall Index 

insurance programs such as Pasture, Rangeland, 

Forage and Apiculture. 

The Rainfall Index is based on National Oceanic 

and Atmospheric Administration (NOAA) 

Climate Prediction Center data. The database is 

the “Improved United States Precipitation 

Quality Control System and Analysis” and 

contains data from 1948 to the present. Multiple 

data sets, including weather, satellite, and radar 

data, are interpolated to 0.25 degrees latitude by 

0.25 degrees longitude grids that smooth the data 

and address the problem of extreme variability of 

individual data sets and basis risk which results 

from being far from a precipitation data input 

source. Losses are calculated based on the 

deviation from normal precipitation for the grid 

and index interval(s). This insurance coverage is 

for a single peril—lack of rain. Coverage is based 

on the experience of the entire grid, and NOT 

individual farms or ranches or specific weather 

stations in the general area. 

The precipitation data used for the Rainfall Index 

pilot program is data developed and maintained 

by NOAA, Climate Prediction Center, and is 

used by many government agencies and private 

entities. This data does not reflect 

the precipitation amounts measured at a specific 

weather station(s) within a given grid. The data is 

validated and reflects a smoothed result 

of nearby weather, radar, and satellite estimates 

to return a total estimate for the grid. The data set 

is the "Unified Rain Gauge Dataset" and goes 

through a rigorous set of quality control checks 

by Climate Prediction Center, including checks 

for extreme values, comparisons of observed 

amounts among nearby weather data sources, 

satellite data, and comparisons to NEXRAD data. 

The outcome is a composite value for the 

entire grid that cannot be traced to a single 

point or data set. 

There are two different crop policies, Pasture, 

Rangeland, Forage and Apiculture, that use the 

Rainfall Index Basic Provisions. The Rainfall 

Index Basic Provisions and the specific crop 

provisions, along with other insurance 

documents, such as actuarial documents, together 

make up a complete insurance program. The 

program is available in six regions across the 

country to test the Rainfall Index in various 

climates, soils, and weather conditions: the warm 

and humid Southeast, the cool and humid 

Northeast, the Northern Great Plains, the 

Southern Great Plains, the semi-arid Southwest, 

and the intermountain region of the Northwest. 

This insurance plan is designed as a risk 

management tool to insure against a decline in 

the Rainfall Index for a grid. It is possible for 

policyholders to have low production or low 

precipitation on their insured acreage and not 

receive an indemnity under the Rainfall Index 

plan of insurance. The only insurable cause of 

loss for an Rainfall Index policy is having a 

final grid index less than the trigger grid 

index. Because the program is designed for 

producers whose production and precipitation 

This fact sheet gives only a general overview of the Federal Crop Insurance Program and is not a complete policy. For further information 

and an evaluation of your risk management needs, contact a crop insurance agent. 
 

tend to follow the average precipitation 

patterns for the grid and not individual crop 

production, it is important that you review the 

historical indices, additional tools, and 

information provided on the RMA Web site to 

determine if the program is suitable for you. 

The Pasture, Rangeland, Forage and Apiculture 

Rainfall Index and Vegetation Index pilot programs 

are being tested in select counties and States. You can 

view a map and a list of the counties and States where 

each index is available at: http://www.rma.usda.gov/ 

policies/pasturerangeforage, for Pasture, Rangeland, 

Forage or at: http://www.rma.usda.gov/policies/ri-vi/ 

apiculture.html for Apiculture. 

Contact Us 

United States Department of Agriculture 

Risk Management Agency 

1400 Independence Ave., SW, Stop 0801 

Washington, D.C. 20250-0801 

TEL: (202) 690-2803 

FAX: (202) 690-2818 

Web site: http://www.rma.usda.gov 

Email: rma.cco@rma.usda.gov 

Download Copies from the Web 

Visit our online publications/fact sheets page at: 

http://www.rma.usda.gov/pubs/rme/fctsht.html 

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, 

color, national origin, age, disability, and where applicable, sex, 

marital status, familial status, parental status, religion, sexual 

orientation, genetic information, political beliefs, reprisal, or 

because all or a part of an individual's income is derived from 

any public assistance program. (Not all prohibited bases apply 

to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, 

large print, audiotape, etc.) should contact USDA's TARGET 

Center at (202) 720-2600 (voice and TDD). 

To file a complaint of discrimination write to: USDA, Director, 

Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410 or call (800) 795-3272 (voice) or (202) 

720-6382 (TDD). USDA is an equal opportunity provider and 

employer. 

Risk Management Agency Rainfall Index/PA-2005