“We tried both Total Weather Insurance (TWI) and MPCI for the first time this year because they cover different things. MPCI is based on crop production; TWI is based on weather. It seemed like both of them could be helpful in different ways.”
His Story
Delmar Bowman’s family has been farming since 1919. “My father took over the land from his father then he passed it on to me.” Delmar currently runs an operation of 160 heads of cattle and 300 acres of corn, soybeans, rye grass and sorghum with his son and his nephew. Delmar was raised on the farm and always planned to take over the operation when it was his time. “I’ve always enjoyed it. I like the independence of it, being out of the public eye and I like the time I am able to spend on my own.”
As independent farmers, before this past spring, the Bowmans never took out any type of crop insurance. They were able to manage some of their own risk by the diversification of their crops and livestock. However, “input costs are rising, which means we get a smaller margin. There are high expenses for crops that we have to pay even if we don’t get good crops.” In addition to the risk he faces due to rising input costs, there is risk on output yields. “Drought is the biggest challenge for my crop yields. In the past 20 years we have seen more drought than anything else. We have soil that dries out quickly too, so we are more dependent on rainfall.”
Given the multitude of risks the Bowmans were facing, last year they took out crop insurance for the first time. They decided to try a mixture of Federal Crop Insurance (MPCI) and Total Weather Insurance (TWI). Delmar’s son spoke to a TWI representative at the Louisville Farm Show and was intrigued by the process. “We tried both because they cover different things. MPCI is based on crop production, TWI is based on weather. It seemed like both of them could be helpful in different ways.”
“I focused on the Drought and Heat Stress components and I did end up experiencing both drought and heat stress. I received a payment quickly after the each component ended, it worked out great.” When asked if he will use TWI or MPCI again next year Delmar said, “I will look into TWI and MPCI again next year. They seem to work together in providing risk management for my operation.”