Here are two examples of how TWI would work for a typical farmer like Josh Norris, Middleton, IN.

Corn coverage example: In a corn-production program similar to Norris’ situation, a grower carries 85% MPCI and an APH of 180 bu. His crop-insurance base price is $6/bu., target yield is 190 bu., estimated input costs are $650/acre and the crop-insurance premium is about $30/acre.

About 80% of the target yield is covered by MPCI. About 20% goes uncovered even if a claim is filed. That amounts to lost revenue of about a $222/acre. A portion of that would be covered by TWI.

Soybean coverage example: In a soybean production program similar to Norris’, a grower carries 85% MPCI and an APH of 50 bu. The crop-insurance base price is $12/bu., target yield is 60 bu., estimated input costs are $250/acre and the crop-insurance premium is $30/acre.

Close to 70% of the target yield is covered by MPCI. About 30% goes uncovered even if a claim is filed. Lost revenue is about $210/acre, some of which would be covered by TWI.

Costs of the weather insurance will vary from region to region, and even field to field, based on soil types, production and weather history. Norris says his rates were $20-25 for corn, $30-35 for soybeans.

“Overall, I received about $90/acre for about 600 acres I had in the program,” he says. “We were very wet during planting, so I got paid on ‘planting rain,’ but not on heat. We had a wet harvest, but not quite enough for payment.”

He says the wet spring likely brought down his corn yields from 180-190 bu. to 165-175 bu. That’s barely enough to quality for MPCI.

“I’m going to have all of my crops signed up for the weather insurance (TWI) again for 2012,” Norris says. “I’ll definitely use it for the next few years to make sure how it works.”

Hamlin says grows may cover any portion of their acres they wish.