The Climate Corporation launches Total Weather Insurance 2013
The Climate Corporation has announced the launch of Total Weather Insurance (TWI) 2013 for corn and soybeans, with more adaptive coverage for increasingly extreme weather.
The 2012 growing season is turning out to be one of the worst and most extreme on record in many parts of the U.S. Starting with the hottest March ever, farmers around the country planted corn weeks earlier than usual. Then continued hot and dry weather destroyed crops in many areas of the Corn Belt as they moved through some of their most vulnerable phases. Data from the National Climatic Data Center shows that the June-July period was both the hottest and driest since 1936 across the U.S. Corn Belt, and moderate to exceptional drought was reported in 63% of the contiguous U.S.
As a result of the extreme weather this growing season, 80% of all TWI Corn 2012 policies have already resulted in payouts to policyholders from The Climate Corporation to compensate them for weather-related yield shortfalls, and USDA weekly Crop Progress reports validate that growers needed those payouts. In Iowa, where 18% of the corn crop was rated ‘Good’ or better in the September 24th Crop Progress Report, 90% of all TWI corn policies written in the state have resulted in a payout to make up for financial loss due to bad weather. And in Illinois, where just 7% of the corn crop was rated ‘Good’ or better in the September 24th Crop Progress report, 98% of all TWI corn policies have resulted in a payout to the policyholder.
“Growers get an average of forty paychecks in their lifetime and each one needs to count,” says David Friedberg, founder and CEO of The Climate Corporation. “Growers with bad yields and good federal crop insurance coverage this season – but no Total Weather Insurance – are going to survive the year. But their low yields will have cost them an opportunity to capitalize on record commodity prices and really get ahead. Growers who bought TWI this year to complement their federal crop insurance locked in some of that profit potential that existed at the start of the season.”
John Greenwood was one of those farmers protected by TWI during the 2012 growing season. He grows corn, soybeans and wheat in Coffeen, Illinois, and says that he can’t imagine leaving a large portion of his profits exposed to loss by relying on federal crop insurance alone.
“The reason we got Total Weather Insurance was to protect ourselves. Our regular crop insurance can cover 75-85% of APH, but we were looking for more coverage,” says Greenwood. “I remember the 1988 drought, and I’d say this year’s a lot worse. From the day bad weather triggered our TWI coverage, we started accumulating payouts and our check is sent automatically. With federal crop insurance, the paperwork is hectic, everything is subject to audits, and of course there are adjusters to deal with. There’s none of that with TWI.”
Introducing TWI 2013 with More Adaptive and Precise Coverage