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.

Topics: ,

Leave a Reply

News Stories
Product News

Enlist Duo Herbicide Registered for Use on Enlist Cotton

January 13, 2017

The U.S. EPA has registered Enlist Duo herbicide for use on Enlist cotton varieties, beginning in 2017.

News

Perdue Tabbed as New Secretary of Agriculture

January 19, 2017

The choice of former Georgia governor Sonny Perdue to serve as Secretary of Agriculture in the Trump Administration has drawn praise from the National Cotton Council and others in the agricultural industry.

News

Large Slate of New Appointees Join The Cotton Board

January 13, 2017

Seventeen members and 18 alternatives have been appointed to serve on The Cotton Board by Agriculture Secretary Tom Vilsack.

News

Cotton Highlights from January WASDE Report

January 12, 2017

The January WASDE report shows increases in production, exports and ending stocks for both the U.S. and global markets.

News

Cotton Sessions from West TX Ag Chemicals Institute Now Online

January 11, 2017

Recordings of sessions and panel discussions on cotton from the 2016 West Texas Agricultural Chemicals Institute Conference are now available online.

News

Hutmacher Named Cotton Specialist of the Year

January 9, 2017

Dr. Robert Hutmacher, California Extension Cotton Specialist, was named the 2017 Cotton Specialist of the Year by his industry peers.

Product News

Data Show Yield Gains from Indigo Cotton in 2016

January 9, 2017

Data collected from 2016 trials show that Indigo Cotton – a seed treatment based on naturally occurring, in-plant microbes to help increase water use efficiency – led to yield improvements on testing acres, including an 11% average yield increase in West Texas.

Around The Gin
Product News

Enlist Duo Herbicide Registered for Use on Enlist Cotton

January 13, 2017

The U.S. EPA has registered Enlist Duo herbicide for use on Enlist cotton varieties, beginning in 2017.

Product News

Data Show Yield Gains from Indigo Cotton in 2016

January 9, 2017

Data collected from 2016 trials show that Indigo Cotton – a seed treatment based on naturally occurring, in-plant microbes to help increase water use efficiency – led to yield improvements on testing acres, including an 11% average yield increase in West Texas.

Product News

FiberMax and Stoneville Release New Varieties for 2017

January 9, 2017

Cotton growers searching to match the right variety the right field now have two new FiberMax varieties and two new Stoneville varieties to consider for 2017.

Product News

PhytoGen Rolls Out Seven New Enlist Varieties for 2017

January 5, 2017

PhytoGen is releasing seven new cotton varieties with the Enlist cotton trait and WideStrike 3 Insect Protection for the 2017 growing season.

Product News

Do You Qualify for the Stoneville Legacy Club?

January 3, 2017

Signup is now open for the new Stoneville Legacy Club, celebrating both the rich history of Stoneville and the generational wisdom of the growers who make 3-plus bales.

Product News

FiberMax Celebrates Growers Who Maximize Dryland Production

December 30, 2016

The new FiberMax Maximizer Club celebrates growers who produce great dryland cotton yields, and signup for the club is now open.

Product News

EPA Registers Engenia Herbicide from BASF

December 21, 2016

The EPA has registered Engenia herbicide for control of more than 200 broadleaf weeds, including glyphosate-resistant weeds, in dicamba-tolerant cotton and soybeans.

Product News

Growers Impressed with First PhytoGen WideStrike 3 Enlist Variety

December 19, 2016

The first growers to plant PhytoGen brand PHY 490 W3FE say the germplasm and technology combination helped them work smarter and increase cotton production.

Latest News
News

Perdue Tabbed as New Secretary of Agriculture

January 19, 2017

The choice of former Georgia governor Sonny Perdue to serve as Secretary of Agriculture in the Trump Administration has drawn praise from the National Cotton Council and others in the agricultural industry.

News

Large Slate of New Appointees Join The Cotton Board

January 13, 2017

Seventeen members and 18 alternatives have been appointed to serve on The Cotton Board by Agriculture Secretary Tom Vilsack.

News

Cotton Highlights from January WASDE Report

January 12, 2017

The January WASDE report shows increases in production, exports and ending stocks for both the U.S. and global markets.

News

Cotton Sessions from West TX Ag Chemicals Institute Now Online

January 11, 2017

Recordings of sessions and panel discussions on cotton from the 2016 West Texas Agricultural Chemicals Institute Conference are now available online.

News

Hutmacher Named Cotton Specialist of the Year

January 9, 2017

Dr. Robert Hutmacher, California Extension Cotton Specialist, was named the 2017 Cotton Specialist of the Year by his industry peers.

News

Chee Receives 2016 Cotton Genetics Research Award

January 5, 2017

Dr. Peng Chee of the University of Georgia’s Coastal Plain Experiment Station has received the 2016 Cotton Genetics Research Award.

News

The Seam Forming Cotton Blockchain Consortium with IBM

January 5, 2017

The Seam, a commodities trading and agribusiness software provider, is working with IBM to form a blockchain consortium for the global cotton industry.

News

Cotton Poised to Gain Ground in 2017

January 2, 2017

U.S. cotton growers plan on planting more cotton in 2017, according to the Cotton Grower Acreage Survey.

News

Scientists Crack Genetic Code for Leaf Shape in Cotton

December 20, 2016

A new discovery gives plant breeders key genetic information they need to alter the shape of a cotton plant’s leaves in potentially beneficial ways.

News

Mississippi Grower is Monthly Winner in Real Yield Sweepstakes

December 19, 2016

A cotton and soybean grower from Tunica, MS, was the October winner of Bayer’s Real Yield Sweepstakes.

News

Monsanto Shareowners Approve Merger with Bayer

December 13, 2016

Monsanto shareholders have voted to approve the merger of the company with Bayer.

News

Cotton Highlights from December WASDE Report

December 10, 2016

The December WASDE report shows slightly higher estimates for U.S. and global cotton production, exports and ending stocks, while mill use and consumption numbers are slightly down.

News

2016: The Year in Washington

December 6, 2016

The National Cotton Council continues to tackle a challenging Washington agenda.

News

Webcast Focuses on Bollworm Management in Bt Cotton

November 30, 2016

A new webcast focusing on bollworm management in Bt cotton has been added to the Focus on Cotton online series from the Plant Management Network and Cotton Incorporated.

News

Bayer May Sell Some Cotton and Canola Assets in Monsanto Deal

November 29, 2016

Bayer expects to sell some cotton and canola seed businesses to help allay antitrust concerns about its acquisition of Monsanto.