When we started the year 2012, drought continued in the minds of most of Texas. People who rely on rainfall for their livelihood (farmers and ranchers) are concerned enough like a herd of cattle is reduced significantly because of lack of standing forage and straw was very short of supplies, while farmers debate when and if applying fertilizers for their fields, wondering what they will be able to plant crops, depending on when and if the rain finally came.
Rainfall is recorded in the year 2011 only amounted to about 11 inches in the coastal bend, which means that we are about 20 inches below normal. Most of the moisture in the ground we’ve been away, used by year
With soil moisture conditions are poor, farmers have to take advantage of the important risk management tool
Many crop insurance option now available to help manufacturers manage risk associated with their crops.
Taking cotton as examples. By 2011, we see some important changes to crop and revenue insurance program. Packed a wide range of products such as multiple-peril crop insurance (i.e., long APH policy results) and revenue insurance products that are applied to cotton (for example, crop revenue coverage, income security and revenue protection) which basically reloads by USDA-RMA, with common mechanisms for price discovery and value.