WeatherManager Weekly

Welcome to this week’s WeatherManager, your weekly journal

for ideas and developments in the weather risk market, brought to

you by eWeatherRisk.

Despite recent rains, pasture land and wheat land still need

rainfall with yearly moisture deficits of over 12” in a number of

areas. We have some tremendous fall and spring drought and

heat hedges. Down south we’ve said for several weeks that

concerns should be on excess rainfall on crops such as sweet

potatoes, peanuts, cotton and fall planted corn, even grain pile

exposure with an active tropics—remember, we are just now

getting to the peak of the Tropical Season! This year is shaping

up as active as 2005 and there is a lot of hurricane season left.

Finally early freeze is an increased risk this year. Consider a

freeze hedge where crops are in good condition but need more

time like the milo in Kansas finally coming back after recent

rains.

Mother Nature isn’t always helpful to those in the agriculture

industry; in fact, sometimes she can be downright cruel. Even

though we haven’t yet learned how to manage Mother Nature,

The Home Agency, with the help of eWeatherRisk, can help you

manage the financial impact of nearly ANY weather condition.

Issue 101

September 13 2012

WeatherManager Weekly

Issue 101

September 13 2012

If there is a weather risk out there detrimental to your

farming operation or Agribusiness, we can customize a

weather risk contract specific to your needs. Contracts

can be written for all kinds of weather risks, from

insufficient precipitation to excessive precipitation, early

or late frosts, and even extreme temperatures in variable

timeframes.

The Home Agency has always been committed to

providing producers the most innovative tools to protect

their businesses even in the most uncertain

circumstances…and a weather risk contract written

through eWeatherRisk is yet another exceptional product

brought to you first by The Home Agency.

Jim Baldonado, Owner

The Home Agency

Recent Weather Risk News… WeatherManager Weekly

Kansas farmers now planting 2013 wheat crop - WICHITA, Kan. (AP) - Kansas

farmers have begun seeding the 2013 winter wheat crop amid a grim fall harvest

of other major crops in the state. Kansas Agricultural Statistics Service reported

Monday that 2% of the state's …KFDA · 1 day ago

Corn harvest remains ahead of schedule = DES MOINES, Iowa (AP) — The

corn harvest continues significantly ahead of schedule in much of the grain belt

with 15 percent of the crop out of the fields in the 18 states that produce most of

the nation's corn crop.

Soybean Reserves Smallest in Four Decades After Drought - Bloomberg-Sep 10,

2012 The smallest U.S. soybean harvest in nine years will leave inventories ...

1936, according to T-Storm Weather LLC, a Chicago-based forecaster.

USDA slightly reduces nation's corn yield forecast - KEYC TV-1 hour ago

... Weather, Sports -USDA slightly reduces nation's corn yield forecast ... but

many farmers say the booklets known for their catchy weather ...

Record crop expected as sugar beet harvest begins Sugar beets are coming out of

the ground in abundance in Montana, Wyoming, Nebraska and Colorado, where

an extra 4 tons per acre should push acre yields to 30.54 tons, according to the

U.S. Department of Agriculture’s Economic Research Service.Billings Gazette ·

1 day ago

Short term precipitation outlook… WeatherManager Weekly

The map to the left is the 5 day precipitation

outlook issued September 12th going through the

weekend. The entire PNW and Northern Plains see

no rain and the ECB stays relatively dry as well. A

cold front drops into NE, KS and OK and an active

tropics show a wet Texas into Mexico. The

Canadian Prairies look to stay dry with only light

moisture along the border but storms possibly piling

into BC and Alaska.

Drought hedges into the fall or winter for winter

wheat and to recharge pasture land should be

considered. Freeze hedges for milo and beans that

are just reviving-remember similar hot and dry

years had late summer and early fall freezes.

Excess precipitation down South with the active

tropics should be hedged as well.

Current weather information… WeatherManager Weekly

The upper map is the Drought Monitor issued last Thursday

that now extends to the end of November. A large portion of

the country is in extreme to exceptional drought conditions

and close to 80% abnormally dry or worse.

The lower map is the Drought Monitor as of this morning.

Even with the strong rains from Hurricane Isaac which

missed the Western Belt) there is very little improvement

and most of the Eastern Belt and all of the Western Belt is

designated “L” for long term.

Drought protection this fall and even this spring can be

purchased for pastureland and winter wheat where we are

seeing interest in October into December hedges and again

for April through May. This protects not only the pasture

and wheat but assures a good stand for next spring planting.

We also have programs to protect against a warm winter for

sugar beet storage where the extended forecast is for a warm

upper Midwest with the El Nino developing. Excess

precipitation at harvest and pile protection down south are

also recommended. Remember the prices for fall risk are the

best now.

Current weather information… WeatherManager Weekly

The upper map shows the 6-10 temperature outlook for

Sep 18th to 22nd. The heat dome gets pushed all the way

to the PNW except the sliver of continued cold in Coastal

California. A huge dome of below normal temperatures

comes into the Corn Belt (remember reverting to normal

would require a big cold front and chance of early

freeze!). Normal daytime highs and overnight lows are

dropping as quickly as sunlight hours and it’s not too late

to buy early freeze hedges.

The lower map is the 6-10 day precipitation outlook

shows below normal conditions concentrated in the PNW

and extending into the Central Plains where the drought is

forecast to continue throughout KS, CO and NE as well as

into the Dakotas. The drought combinations we have been

suggesting offer great protection-call and ask about them!

Above normal conditions spread east of the Mississippi

River.

With the Southern and Central Plains into the Corn Belt

staying below normal, drought hedges for pastureland and

winter wheat are highly recommended as are early freeze

hedges from Kansas north for milo, beans, vegetables and

sugar beets where drought conditions increase freeze risk.

6-10 Day Outlooks

Valid: September 18 2012 to September 22 2012

Updated: 12 Sep 2012

Current weather information… WeatherManager Weekly

The upper map is Wednesday’s 8-14 day temperature outlook with

above normal conditions concentrating west of the Rockies and

below normals intensifying in the ECB, and particularly around the

Great Lakes. We continue to suggest hedges against early freeze

for most of the milo and bean belt, but with the 2 week advance

purchase, the window is closing fast!

The lower map is Wednesday’s 8-14 day precipitation outlook

which shows the most below normals in the PNW which would

tend to continue with a developing El Nino but with pretty strong

below normals spreading through the Central Plains and now all

the way into the Tennessee Valley. Above normal precipitation is

along the Gulf Coast and around the Great Lakes into New

England. We have had requests all over the south and east coast for

excess precipitation hedges for September into October associated

with good crops, wet conditions and tropical threats and these can

still be bought 15 days ahead of time as Hurricane Season runs

through the end of October and excess moisture is likely to extend

into November.

Consider a Sept to October/November drought hedge that would

benefit both your beans and winter wheat. Consider excess

precipitation hedges for Southern cotton, sweet potatoes and

peanuts. 8 to 14 Day Outlooks

Valid: September 20 2012 to September 26 2012

Updated: 12 Sep 2012

WeatherManager Weekly

Points to Consider...

Risk strategies can be tested using indices you and your

client design;

There are now close to 6,000 weather stations that are

available, single or in combination to cover your weather

risk, take a look to see how expanded the coverage is if you

have not looked lately!

Immediate pricing allows you to see what possible

outcomes may occur for your client;

Contract purchase at the desktop or through structure

support means fast turn around on contracts.

The company behind eWeatherRisk.com products is a Standard

and Poor's AA- rated multi-national reinsurer.

Contact your agent for specific needs at 1-800-245-4241 or

contact:

• Jim Baldonado: 308-325-0398

• Email: jbaldonado@thehomeagency.com

• Any The Home Agency locations

Issue 101

September 13 2012