In this week’s Georgia Cotton Commission report we want to give a brief update about crop insurance numbers. This year’s cotton insurance price is set at $0.73 per pound per the formula used by RMA which looks at the futures price of the December cotton contract from mid-January to mid-February. RMA has a neat online Price Discovery Tool that can help growers find the correct insurance price for their various commodities. In 2015, 92% of all cotton acres in Georgia had some type of crop insurance coverage with 40% of all cotton acres enrolled in STAX. In 2016, 96% of all cotton planted in Georgia had some type of crop insurance coverage with STAX coverage on 37% of the planted acres. This increase in the amount of insurance bought in 2016 versus 2015 and a decrease in the amount of STAX acres enrolled in Georgia mirrors national data. All cotton crop insurance nationally in 2015 was 91% and jumped to 93% in 2016 while STAX acres decrease from 31% nationally in 2015 to 25% in 2016. See chart below.
|GA All Cotton Insurance||92%||96%|
|US All Cotton Insurance||91%||93%|