COTTON POLICIES

Things to Consider

In the 2018 farm bill cotton was reintroduced as a covered commodity through the programs that are administered by the Farm Service Agency.  Seed Cotton is now eligible for enrollment in ARC or PLC.  In the past ARC/PLC enrollment for seed cotton was straight forward, however the increase in price makes the decision for 2022 more complicated. Our team at Agriliance is prepared to illustrate the advantages and disadvantages in the seed cotton program and how it relates to your participation in STAX for the 2022 crop year.  To speak to an agent about coverage and enrollment decisions, please click the “Contact Us” button below and fill out the required information. We look forward to learning more about your farm and helping with your risk management decisions.

Building Policy Unit Structure

Optional Units
Enterprise Units
Enterprise by Practice
Multi-County Enterprise

Important Options to Elect

Yield Adjustment
Yield Cup
Yield Exclusion
Trend Adjustment
Level by Practice
Seed Endorsement
Yield adjustment replaces a low yield for a particular year in a producer’s APH database with a yield equal to 60% of the county t-yield.
Yield cup keeps the approved yield for each farm from dropping more than 10% as new yield records are added each year.
Yield exclusion allows certain years to be removed from a farm’s production history. To be eligible for exclusion, the county yield must be at least 50% below the simple average of the county yields for the previous 10 consecutive crop years.
Trend adjustment increases a farm’s guarantee by adjusting the yield history upward in accordance with the trend adjustment factor established by the county. This option allows a producer’s 10-year production history to match his/her current yield potential.
Where applicable, an insured may select different levels of coverage for irrigated and non-irrigated practices. For example, a producer may elect to insure irrigated acres at a lower level than non-irrigated acres.
This endorsement offers yield loss coverage for cottonseed at a specified price per pound. The level of coverage provided through seed endorsement will match the coverage selected for cotton lint.

County / Area Plans

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    Supplemental Coverage Option

    The supplemental coverage option provides additional coverage for your underlying crop insurance policy. SCO losses are paid on an area-wide basis and are only triggered when the county falls below 86% of the expected yield or revenue. The government subsidizes 65% of the SCO premium. ARC/PLC elections at FSA will affect product eligibility.

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    STAX-RP

    An area-based plan of insurance for upland cotton that provides protection against natural causes of loss that result in the area revenue falling below the county loss trigger.

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    HIP-WI

    The Hurricane Endorsement covers a portion of the deductible of the underlying crop insurance policy when the county, or a county adjacent to it, is within the area of sustained hurricane force winds from a named hurricane that are published by the National Hurricane Center (NHC) at the National Oceanic and Atmospheric Administration (NOAA).

Private Products

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Price Flex/Select

Price Flex/Select

These private products help us establish a higher planting price guarantee when the market is volatile and shows better opportunities outside of the standard price discovery windows.

Open Boll Policy

Open Boll Policy

This product extends coverage to unharvested cotton while in the open boll stage for direct loss caused by wind. We think of this product as a good way to protect the top end pounds above your APH guarantee. In certain areas that is susceptible to frequent hurricanes during harvest this can be a valuable risk management tool that will increase the farms bottom line during a hurricane.

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Hail and Wind Coverage

Hail and Wind Coverage

This is an additional product that can be bought along with your MPCI insurance coverage that protects against hail and wind in most areas. We typically like to see this on irrigated corn but it is also a fit for non irrigated corn in many areas.

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