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Coverage offered by RI-PRF can form part of an effective drought risk management strategy.
PASTURE, RANGELAND, FORAGE – RAINFALL INDEX (RI-PRF) insurance is a group insurance plan designed to protect against forage loss due to reduced rainfall. RI-PRF is the most widely used crop insurance in Wyoming, both in total acres (6,978,110) and total liability ($70,304,347). Coverage offered by RI-PRF can form part of an effective drought risk management strategy. The challenge is how to evaluate that strategy, especially on a long term basis. Will a strategy using RI-PRF generate a positive return over time? How do we account for the time value of money when making comparisons between alternatives?
The Multi-Temporal Risk Analyzer (MTRA) from RightRisk.org is an excellent tool designed to help in answering these questions. MTRA was created to provide long term partial budgeting analytics and is effective for examining insurance coverage like RI-PRF.
