Innovative AG Weather Based Risk Management

[TOM4CWB]

Agstar77,

Many of your requests for improvements in weather based problems that cause the base problems in crop production will be likely implemented in the next year or 2.

We had strong industry and Fed/Prov government representation at our meeting yesterday.

One of the most facinating interesting discussions on risk management I have ever attended.

We are working hard to implement a weather based private public alliance that will pay out specific weather perils... like a minus 4 frost in the last 2 weeks of August... or a 4 inch shortfall in rain from June 15 to July 31.

In Edmonton we had the web based system doing real time calculations based on 50 years of weather information in Alberta.

One of the most impressive well put together crop protection systems... the first with this kind of technology ever presented anywhere.

And brought to us by the likes of Wildrose Ag producers... Ag Canada, Canola Hay and Pulse growers!

We are setting this up for national application... if Provinces want to join in.

In combination with Prime Minister Harpers announcements yesterday... we will have the opportunity to stabilise income, insure specific crop perils like frost, too much or little rainfall, grower specified and backed by reinsurance privately.

We project AT LEAST a 50% decrease in administration... in going to a hail insurance specified peril system... but have weather stations determine pay outs without a need to check growers grain bins!

A choice of traditional production insurance, weather insurance, or a combination of weather insurance and area based production insunance... take your choice.

THis will stabilise and transform our cropping sector by specifying a dollar amount of coverage like hail insurance... and will match up with NISAII and CASPII to create a seamless stabilisation system to create prosperity in our Ag communities!

God Bless Canada!

[WRAPper]

Did you go to the meeting in Edmonton yesterday Tom?

[silverback]

Sounds good to me.

[TOM4CWB]

Wrapper,

"One of the most facinating interesting discussions on risk management I have ever attended."

There is much work to be done to get the insurance people comfortable with this system... it won't be done over night and will take carefull attention
to detail to make this project sucessful.

[WRAPper]

I'm pleased you're able to spend some time on this project it has good potential.

[FarmRanger]

This has real potential.
With the all peril insurance we have now, you are forced to buy insurance for a peril whether you feel its worth insuring or not. You get the coverage they tell you, and if you change you operation to increase production there is no recognition. No waiting 30 years for production insurance coverage to try to catch up to an investment in yield increasing technology (eg. no-till in southern Alberta).

With this weather based insurance, it sounds like you’ll be able to insure for frost, excessive heat, lack of or excessive rainfall, etc; at any time and in varying proportions at the nearest weather stations and in the $ amount you choose.

I hope this thing gets off the ground.