Crop Insurance to help all farmers

[rodbradshaw]

A different idea.
What if we could insure for frost free days, A given amount of precipitation per month and so many heat units. These are the variables that we can not control unless you live in an irrigation district.
If you can hedge your weather then it doesn't matter what the cost of your inputs are as the premium would reflect the amount X the risk factor. No more worrying about crop insurance measuring bins and fields and seeing if you are using accepted agricultural practices. It could be at lot more afforadable as the system is not open to abuse as it eliminates the individual management factor.

[TOM4CWB]

Rod,

AFSC is actively working on the rainfall side, as reinsurance is avaliable on rainfall.

The wheels turn slowly, especially when government is involved!

[rodbradshaw]

Tom
Do you think farmers would except a concept like this? Or is it to radical for us to get our heads around. It would certainly cut down on the number of bureaucrats needed to administer the program.
Rod

[TOM4CWB]

Rod,

I guess the big problem will be that rough justice will occur.

Exact losses cannot be measured, if the weather station is 10 miles away, a neighbour that recieves twice the rainfall I recieve could get the same crop insurance payment.

Or If the rainfall 10 miles away is not reduced, and my farms is, then no payments may trigger even when real rainfall shortages occurred.

I have suggested that radar images could be used for specific farms, and if these are calibrated to rainfall monitoring stations, a reasonable rainfall measuring system could be developed with enough integrity that reinsurance people would look at them.

Obviously much work is needed before this type of system will be acceptable to the average farm!