What is in this article?:
- Cottonseed insurance pilot 2011 introduction
- Understanding the program
A cottonseed insurance program developed by Plains Cotton Growers, Inc., will be available for the 2011 crop, across the Cotton Belt. The program, the Cottonseed (Pilot) Endorsement has been well received by growers and industry groups.
A new federal crop insurance pilot product giving cotton producers the opportunity to purchase additional yield-based coverage on the cottonseed they produce is making its way through the implementation process and appears to be on-track for a 2011-crop debut, according to Lubbock-based Plains Cotton Growers, Inc., (PCG). The FCIC Board approved the new program for pilot status on July 30, 2009.
Called the Cottonseed (Pilot) Endorsement (CPE), the innovative new product was developed by PCG with a two-fold purpose: (1) to provide growers the ability to insure the value of the cottonseed they produce in a similar manner as they insure their cotton lint; and, (2) to provide growers another reason to include cotton in their crop mix since a greater portion of the value they derive from the crop can be covered by insurance.
The idea of the new product has been well received, and strongly supported, by growers and cotton industry groups throughout the Cotton Belt.
As a result of that support and the nature of the new product the Federal Crop Insurance Corporation Board of Directors and the USDA Risk Management Agency agreed to approve the product for sale throughout the Cotton Belt.
The new CPE product will be an add-on endorsement available for growers who purchase a qualifying buy-up policy of insurance in 2011. The cottonseed endorsement can be purchased by growers who select either Yield or Revenue coverage policy of insurance under the new Combo Policy provisions that qualify as buy-up plans of insurance. As such the CPE premium is eligible for the full range of federal crop insurance premium subsidy just like the growers cotton lint policy. Growers who purchase catastrophic (CAT) or group risk (GRP or GRIP) policies of insurance will not be able to purchase the cottonseed endorsement add-on.
Additional information about the endorsement will be distributed to Approved Insurance Providers (AIP) as they are apprised of 2011 insurance offering by the USDA Risk Management Agency over the next few months. Since it will be in pilot status for 2011, all AIPs that sell eligible federal crop insurance products to cotton producers will have the option of offering the Cottonseed Pilot Endorsement to their customers.