Rainfall and Vegetation Indices
The Rainfall and Vegetation Index plans of insurance are designed as
risk management tools to insure against declines in an index in a designated area
called a grid. They are primarily intended for use by producers whose crop
production tends to follow the average precipitation or vegetation patterns for
the grid. It is possible for you to have low crop production on the acreage that
you insure and still not receive a payment under these plans. Because the program
is designed for producers whose crop production tends to follow average
patterns and not individual crop production, you should review the historical
indices, additional tools, and information provided to determine
if these programs are suitable for your risk management needs.
Rainfall Index (RI)
Rainfall Index (RI) is based on weather data collected and maintained by NOAA’s Climate Prediction Center.
The index reflects how much precipitation is received relative to the long-term average
for a specified area and timeframe.
Vegetation Index (VI)
Vegetation Index (VI) is based on the U.S. Geological Survey's Earth Resources Observation and Science (EROS) normalized difference
vegetation index (NDVI) data derived from satellites observing long-term changes in greenness of
vegetation of the earth since 1989.