Communicating weather and climate information to producers seeking agricultural insurance payments for drought and extreme weather

Agricultural producers use specialized insurance to help reduce the risk of losses to crops and forage from extreme weather and climate events such as drought, hail, floods, and tropical cyclones. But they often do not have a good understanding of what data are used to validate their claims when the worst happens and are upset when their perception of having a qualifying event does not match what the insuring agency says. Rapid onset (“flash”) drought is particularly frustrating to livestock producers because the insurance is currently linked to the Drought Monitor status, which assesses drought on longer time scales than those that often affect the growth of pastures and crops, especially at times of high water use. This mismatch of time scales makes it difficult for producers to get payments for lost forage and pasture that would offset the purchase of expensive hay or reduce the need to sell cattle. Hurricane and tropical storm insurance can also be mystifying and frustrating to producers who believe that they qualify for insurance but are not included in the official Risk Management Association (RMA) maps of counties where claims are accepted. This presentation will discuss problems with perception of weather and climate data and how it is used to collect insurance. Methods to educate producers and extension agents on weather and climate data and its application to insurance will also be discussed.