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| I spoke with a farmer in W MN a couple weeks ago who received a quote for TWI. In 2011, his gross premium would've been $32 per acre. After a very volatile weather year '11, he would've received a payment of $10 (based on their analysis of historical payouts). In other words, he would've still had to pay in $22/acre. He also received a small federal crop payment this year.
This producer farms 3,000 acres of corn and this year his yield was 30 bushels under his APH and 50 bushels less than expectation.
How do you expect to collect a $66k premium from a guy who lost $100k on his crop this year and still retain him as a client? I know this isn't the norm, but I would expect this to happen with at least one client once every year or two with a full book of business.
Aren't you at risk of loosing at least a few of your steady crop insurance clients?
It seems like it would be really, really hard to get a guy to sign of for weather insurance after a couple years of good weather (and no payments). Thoughts on this?
Even though everyone knows this is weather insurance, not yield/price insurance, it seems like it would be very hard for a farmer to stomach this payment and their is a good chance of losing all of his business (MPCI, hail, life, etc) because of this. | |
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Anyone sell Total Weather Insurance (Climate Corp)?
