The Climate Corp. adapts 2013 wheat-crop coverage
The Climate Corp. is aware that the weather is increasingly extreme across the farm belt of the United States — particularly in wheat country, where rainfall has been largely nonexistent for close to three months. As a result, the company’s 2013 wheat-crop coverage is more adaptive than ever before.
The 2012 growing season was a roller coaster for many growers in key wheat-growing regions of the United States, says David Friedberg, founder and CEO of The Climate Corp.
“As a result of the drought and extreme heat that the winter wheat crop faced, 100% of all winter wheat TWI [Total Weather Insurance] policies sold in Nebraska, 78% of all winter wheat policies sold in Kansas and 62% of all winter wheat policies sold in Colorado resulted in payouts to policyholders to compensate them for weather-related yield shortfalls,” he says.
• The Climate Corp. adapts its wheat coverage for 2013.
• One hundred percent of Nebraska policies, 78% of Kansas policies pay.
• Dighton producer says TWI was a “perfect fit.”
Growers get an average of 40 paychecks in their lifetime, and each one needs to count, Friedberg says.
“Growers with bad yields and good federal crop insurance can sometimes survive to farm another year, but with today’s commodity prices, low yields can cost growers an opportunity to really get ahead. Growers who bought TWI for their 2012 winter wheat crop locked in some of the profit potential they saw in a crop that, in many places, looked very good as it came out of dormancy last spring.”
Central and southern Kansas were among those places. Many growers saw potential for the best crop of their lifetime — that is until disease, insects and drought came into play.
Bryan Burnett was one of those farmers protected by TWI during the 2012 growing season. He grows winter wheat near Dighton and says that TWI was a perfect fit for his operation.
“Weather is the major factor that determines if I’m going to have a good or bad wheat crop, and it’s something I can’t control. Around here, most years we worry about drought, but other years we can be too wet, and TWI works because it provides coverage against bad weather in either direction,” says Burnett.
“This last year, it turned out that heat and drought in the spring were the problem, and when things go bad, federal crop insurance only provides so much coverage. My Total Weather Insurance policy provided me with additional payouts that came automatically, without the need for me to talk to an adjuster or file a claim.”
This article published in the January, 2013 edition of KANSAS FARMER.
All rights reserved. Copyright Farm Progress Cos. 2013.