Rangeland Drought Protection
- What does "Start Protection Level" mean?
- What does "Maximum Protection Level" mean?
- Why would I set the "Maxiumum Protection Amount" to occur at greater than 0% of average rainfall?
- What is "Storm Protection"?
- Is there a minimum or maximum number of acres I must cover?
- Is there a maximum coverage level per acre?
- Are there any limitations about the type of land that can be covered?
- Can I cover different land, or different numbers of acres in each time intervals?
- How should I select how much coverage is needed on each acre?
- What influences pricing?
- Why do adjacent grids or back-to-back months return different prices?
What does "Start Protection Level" mean?
The "Start Protection Level" is the amount of rainfall below which you want to start being paid. For example, if you believe that you will begin to sustain losses if the rainfall during your coverage period is less than 70% of normal, then you should set your "Start Coverage Level" to 70%. Lower values will result in less expensive coverage, as lower rainfall levels will be required to trigger payment.What does "Maximum Protection Level" mean?
The "Maximum Protection Level" is the amount of rainfall at which you will receive the "Maximum Protection Amount". For example, if you know that below 25% of normal rainfall, you will sustain full loss, then you would set the "Maximum Protection Level" to 25%. If the rainfall value during your coverage period is below 25%, you will receive the full amount you specified as your "Maximum Protection Amount". You can buy coverage that pays out a flat amount by setting both the "Start Protection Level" and the "Maximum Protection Level" to 25%. You can create less expensive coverage that only pays the maximum amount at exactly 0 inches of rainfall by specifying "0%" as the "Maximum Protection Amount".Why would I set the "Maxiumum Protection Amount" to occur at greater than 0% of average rainfall?
Rangeland can become unusable before rainfall levels reach zero. Since the maximum loss can occur when rainfall is 20% of normal or higher, some ranchers want to receive a full payout at rainfall above 0% of normal.What is "Storm Protection"?
Occasionally a heavy storm may bring significant rainfall that puts the total above the payout threshold, but due to significant runoff you do not receive the benefit of that precipitation. In order to avoid this, WeatherBill does not count rainfall above two inches received over any two-day period.Is there a minimum or maximum number of acres I must cover?
No, you may protect one acre or more than a thousand acres. There are also no restrictions on what percentage of total acreage must be covered.