The New Farm Bill Offers Many Options Requiring Careful Decisions

Adams points out that the transition payment is paid on 2013 base and is subject to a limit of $40,000 per legal entity. This payment is separate from the $125,000 limit for other programs impacting other crops, and eligibility is not affected by other program choices or planting decisions made this year.

In 2015, STAX will offer cotton growers several options for coverage. It can be purchased as the only insurance policy covering an acre, or it can be purchased in addition to existing insurance policies. It will be based on actual county income relative to an expected income and is designed to cover a range from 90 percent down to 70 percent of expected county income.

“Indemnities under STAX are triggered by the revenue experience at the county level or a combination of counties, if needed, to get an actuarially-sound product,” explained Adams. “It is not based on individual experience. It is the collection of individuals in a county and that revenue experience.

“There’s a 10 percent deductible if you purchase STAX at its maximum,” he continued. “If the county actual income comes in above 90 percent, there’s no STAX indemnity. If it comes in anywhere between 90 and 70 percent, an indemnity is triggered. And if county income falls below 70 percent, then the STAX indemnity is at its maximum level.”

STAX will carry a premium subsidy of 80 percent, with producers paying the remaining 20 percent. However, the lower band of STAX coverage cannot overlap the coverage level of an underlying insurance policy on that same acre, so growers will need to make decisions about balancing their insurance coverages.

“STAX will be offered for irrigated and non-irrigated acres to the greatest extent possible,” added Adams. “And there will be some new features and options that we’ll learn about as we go further into the year that will allow producers to scale their indemnity up or down depending on how much of the protection factor they purchase.”

Also coming in 2015 is the Supplemental Coverage Option (SCO), which will be available for Upland cotton and other commodities such as corn, wheat, soybeans, and rice. SCO requires underlying insurance coverage and helps provides coverage for a portion of that policy. However, it cannot be purchased on acres covered by STAX or for commodities covered under ARC.

While STAX coverage is based on revenue experience, SCO indemnities can be triggered by either county yield or revenue experience. “There are some similarities in the concepts,” said Adams. “There are some differences, though, in the details.”

 

Visit the Cotton Grower Guide to the 2014 Farm Bill webinar for more information from Dr. Joe Outlaw and Dr. Gary Adams.

 

Keep In Mind

With all of the new insurance products and programs coming for all crops, both Outlaw and Adams remind growers to keep a couple of things in mind as they begin sifting and sorting through all of the options.

First, the new Farm Bill now requires growers to have a conservation compliance program in place in order to be eligible for any insurance premium subsidy.

And second, don’t be shy about asking for help. Education for this Farm Bill is going to be a continuing process, since final rules and provisions are still being determined.

Investigate online decision tools like the one being developed by Texas A&M, AFPC and the University of Missouri. Seek out your FSA officials for answers as soon as they have the information in hand. And ask your insurance agent about all of the options and the right type of coverage for your operation.

Pages: 1 2

Topics: ,

Leave a Reply

News Stories
News

Important Farm Bill Deadlines Approaching

January 15, 2015

With sign-up deadlines approaching, farmers have several important decisions to make under the 2014 farm bill.

News

How to Incorporate Biocontrols Into a Pest Management Program

January 26, 2015

Crafting a “softer” pest management program for your cotton fields is likely in your future – if it’s not here already.

Product News

Bollgard II XtendFlex Cotton Poised for Limited Introduction

January 21, 2015

A limited introduction of Bollgard II XtendFlex cotton varieties is planned for the 2015 planting season through Deltapine and select licensees.

News

Snider Named Outstanding Young Cotton Physiologist

January 17, 2015

John Snider, assistant professor with the University of Georgia, was honored as Outstanding Young Cotton Physiologist during the recent Beltwide Cotton Conferences in San Antonio.

Product News

USDA Deregulates Dicamba-Tolerant Technologies for Cotton and Soybeans

January 16, 2015

The USDA has announced its decision to deregulate Bollgard II XtendFlex cotton and Roundup Ready 2 Xtend soybeans – Monsanto’s dicamba-tolerant trait technologies for those crops.

News

Crop Management Seminar Presentations Now Available Online

January 16, 2015

Eight presentations from Cotton Incorporated’s Crop Management Seminar (CMS) in Tifton, GA last November are now available for online viewing.

Product News

Bayer CropScience Anticipates Registration for New Cotton and Peanut Insecticide

January 15, 2015

Bayer CropScience anticipates the registration of Velum Total, the company’s newest insecticide/nematicide, for the 2015 cotton and peanut season in the Southeast.

Around The Gin
Product News

Bollgard II XtendFlex Cotton Poised for Limited Introduction

January 21, 2015

A limited introduction of Bollgard II XtendFlex cotton varieties is planned for the 2015 planting season through Deltapine and select licensees.

Product News

USDA Deregulates Dicamba-Tolerant Technologies for Cotton and Soybeans

January 16, 2015

The USDA has announced its decision to deregulate Bollgard II XtendFlex cotton and Roundup Ready 2 Xtend soybeans – Monsanto’s dicamba-tolerant trait technologies for those crops.

Product News

Bayer CropScience Anticipates Registration for New Cotton and Peanut Insecticide

January 15, 2015

Bayer CropScience anticipates the registration of Velum Total, the company’s newest insecticide/nematicide, for the 2015 cotton and peanut season in the Southeast.

Product News

New FiberMax and Stoneville Varieties for 2015 Feature GLT Technology

January 14, 2015

Bayer CropScience has announced four new FiberMax and Stoneville cotton varieties for the 2015 season.

Product News

PhytoGen Introduces 2015 Cotton Varieties

January 13, 2015

PhytoGen’s cottonseed portfolio for 2015 includes proven high yielding varieties, as well as new varieties featuring advanced insect, nematode and disease technologies.

Product News

Monsanto and FMC Renew and Broaden Crop Protection Agreement

January 8, 2015

Monsanto and FMC have agreed to extend and broaden their current relationship to help benefit cotton, corn and soybean growers through Roundup Ready PLUS Crop Management Solutions.

Product News

Deltapine Announces Class of 15 Cotton Varieties

December 16, 2014

Deltapine has announced two new high-yielding cotton varieties for its Class of 15, with several potential varieties awaiting regulatory approvals of the Bollgard II XtendFlex technologies.

Precision Technology

NORAC Hybrid Mode Receives U.S. and European Patent Approval

December 8, 2014

NORAC Systems International Inc.’s Hybrid Mode in-crop spraying feature has received patent approval in the U.S. and Europe.

Latest News
News

How to Incorporate Biocontrols Into a Pest Management Program

January 26, 2015

Crafting a “softer” pest management program for your cotton fields is likely in your future – if it’s not here already.

News

Snider Named Outstanding Young Cotton Physiologist

January 17, 2015

John Snider, assistant professor with the University of Georgia, was honored as Outstanding Young Cotton Physiologist during the recent Beltwide Cotton Conferences in San Antonio.

News

Crop Management Seminar Presentations Now Available Online

January 16, 2015

Eight presentations from Cotton Incorporated’s Crop Management Seminar (CMS) in Tifton, GA last November are now available for online viewing.

News

Important Farm Bill Deadlines Approaching

January 15, 2015

With sign-up deadlines approaching, farmers have several important decisions to make under the 2014 farm bill.

News

NCC Asks for Planting Survey Responses

January 9, 2015

The National Cotton Council is seeking producer responses to the annual survey of 2015 planting intentions by January 16.

News

New Cotton Board Appointments Announced

January 9, 2015

Agriculture Secretary Tom Vilsack has appointed 12 members and 12 alternate members to serve three-year terms on the Cotton Board.

News

Pellow to Succeed Anderson as PhytoGen R&D Lead

January 9, 2015

John Pellow is succeeding David Anderson as PhytoGen global breeding leader for cotton at Dow AgroSciences.

News

USDA Helps Kick Off the International Year of Soils

January 8, 2015

USDA has joined other global organizations in celebrating the International Year of Soils.

Achievement

Collins Named Extension Cotton Specialist of the Year

January 7, 2015

Guy Collins of North Carolina State University has been honored as the 2015 Extension Cotton Specialist of the Year.

Achievement

Scheffler Receives 2014 Cotton Genetics Research Award

January 7, 2015

Dr. Jodi Scheffler, a respected cotton geneticist with USDA’s Agricultural Research Service, is the recipient of the 2014 Cotton Genetics Research Award.

Achievement

Jimmy Dodson Receives 2014 Cotton Achievement Award

January 6, 2015

Jimmy Dodson, a third-generation cotton farmer from Robstown, TX and a prominent leader in the cotton industry, has received the 2014 Cotton Achievement Award from Cotton Grower magazine.

Cotton Production

Cotton Grower Acreage Survey: Growers Dialing Back Acres in 2015

January 5, 2015

The 2015 Cotton Grower Acreage Survey suggests cotton farmers could reduce cotton plantings by more than 10 percent this year.

News

USDA Extends Public Comment Period for Conservation Stewardship Program Rule

December 31, 2014

USDA’s Natural Resources Conservation Service has extended the public comment period on the Conservation Stewardship Program interim rule through January 20, 2015.

News

RMA Announces APH Yield Exclusion Details

December 26, 2014

The Risk Management Agency has announced program details related to the Actual Production History Yield Exclusion provision to the 2014 Farm Bill, including information on eligible crops, crop years and counties where producers may exclude certain yields.

News

Consequences of Texas Drought Continue to Linger

December 23, 2014

Although parts of Texas have received rain, drought will continue to be an issue, with 35 percent of the state still in extreme or exceptional drought status.