A Risk Management Agency Fact Sheet 

Vegetation Index Pilot Program 

Program Aid November 2010

Number 2004 

United States 

Department of 

Agriculture 

The Risk Management Agency is now offering a 

pilot Vegetation Index Basic Provisions that 

replaces the Group Risk Plan Basic Provisions 

for Vegetation Index insurance programs. Two 

examples of such programs are Pasture, 

Rangeland, Forage and Apiculture. 

The Vegetation Index Program uses data from 

Normalized Difference Vegetation Index (NDVI) 

data and uses an approximate 4.8 by 4.8 mile 

grid. Grids this size reduce the basic risk of 

county level programs while eliminating the need 

to measure actual production. 

NDVI data comes from the United States 

Geological Service, Earth Resources Observation 

and Science (USGS-EROS) data center for the 

conterminous United States from the 14-day 

compositing period archive. The USGS-EROS 

database contains data from 1989 to the present. 

In addition, temperature data is used to constrain 

the NDVI results when there are extreme 

temperatures. Daily temperature data comes 

from the National Oceanic and Atmospheric 

Administration (NOAA). 

Currently, there are two different crop insurance 

programs, Pasture, Rangeland, Forage and 

Apiculture, that use the Vegetation Index Basic 

Provisions. The Vegetation 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 Vegetation 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. 

The NDVI is an alternate measure of vegetation 

greenness which is used to estimate local forage 

conditions and productive capacity. NDVI is not 

a direct measure of any specific crop production; 

it is a measure of ALL vegetation or biomass in a 

grid. Insurance coverage is based on the 

experience of the entire grid, and NOT individual 

farms or ranches. Losses for the Vegetation Index 

are indemnified based on the deviation from 

normal NDVI (expected grid index) within the 

grid and index interval(s) selected. NDVI 

measurements are obtained throughout the time 

period insured and are averaged. When the grid’s 

accumulated index (final grid index) falls below a 

“trigger grid index” (coverage level multiplied by 

the expected grid index), insured producers may 

be indemnified. 

The insurance plans that use this index are 

designed as risk management tools to insure 

against a decline in the Vegetation Index for a 

grid. It is possible for policyholders to have low 

production on their insured acreage and not 

receive a payment under an insurance plan that 

calculates crop losses using a Vegetation Index. 

The only insurable cause of loss for a 

Vegetation Index policy is having a final grid 

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. 
index less than the trigger grid index. 

Because the program is designed for produce

whose production and vegetation index tends

to follow the average vegetation index patter

for the grid and not individual crop productio

it is important that you review the historical 

indices, additional tools, and information 

provided on the RMA Web site to determine 

the program is suitable for you. 

The Pasture, Rangeland, Forage and 

Apiculture Rainfall Index and Vegetation 

Index pilot programs are being tested in selec

counties and States. You can view a map and

list of the counties and States where each ind

policies/pasturerangeforage, for Pasture, 

Rangeland, Forage or at: http:// 

apiculture.html for Apiculture. 

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

www.rma.usda.gov/policies/ri-vi/ 

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 

W

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

mail: rma.cco@rma.usda.gov 

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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 Vegetation Index/PA-2004