The Higher the Clouds, the Finer the Weather

Weather is not just a random thing that happens.  As a farmer, many of you are used to checking the forecast and looking out the window to see what the day will bring. Last year proved to be more difficult than that, as few of us had the opportunity to do any singing in the rain in 2012. We are hopeful that 2013 will bring more moisture to replenish our soils. However, with a goal of 300 BU corn, it is vital that we do more than hope for perfect weather.  We need to use all of the tools available to protect above our APHs. With new innovative insurance products that have been introduced to crop insurance, we now have the ability to cover the gap between our multi-peril coverage and your expected yields. As you’re looking for ways to manage risk going into the upcoming growing season, we recommend taking a look at the innovative product called Total Weather Insurance from Climate Corporation.

With the opportunity to use Total Weather Insurance (TWI), we are able to be more data driven to cover what growers are actually producing. To be fully prepared, we can’t gamble that Mother Nature will take care of the crop that we put out there.  We need to protect ourselves and we are now able to be more financially responsible by using sophisticated data to protect the full potential of the crop. Weather continues to serve as a great metaphor to each growing season- “Sometimes it’s good, sometimes it’s bad, and there’s nothing much you can do about it but carry an umbrella.”  Crop insurance serves as the umbrella over our heads to keep us from getting caught in a situation without the right protection.

TWI monitors weather risks, such as heat stress, excess moisture, drought, or early freezes.  Since TWI is triggered on pre-defined weather risks and not yields losses, there is no need to work with an adjuster, which means audits by the insurance company are eliminated. As a grower, you can customize your coverage by soil types and seed varieties. Your payments are then generated from events that limit your yield.

What we are hearing consistently is that more weather extremes are in our near future.  It’s important, that as a grower, you make your one paycheck for next year count for all its worth.  We work with farmers to cover what they are trying to produce, not just purchase any policy. TWI is a great way to do that! Input costs are high and there is potential that land values will continue to increase, so a solid plan is necessary from a risk management perspective to ensure your operation’s profitably. Corn Capital Innovations is excited to take an advanced look at risk management for your operation.

As smart phones get smarter and our lives become more dependent on our cell phones, TWI works well with growers to provide real time information and immediate updates on the progress throughout the growing season. TWI can’t be purchased with just any agency, so call the Corn Capital Innovations Crop Insurance Team at 320-523-2252 to build an individual risk management plan that’s right for you.


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