Insuring an Improved safety net

摘要

TAKE A moment to consider the impact of brutal drought or once-in-a-hundred-years rain on this year's cotton crop. Then, contemplate where most cotton growers might be without crop insurance. It's probably not a pretty mental image. As continuing challenges mounted toward direct payments and counter-cyclical payments in past farm bills, the cotton industry has shifted its emphasis toward crop insurance programs to provide a safety net for growers. The proposed STAX program for cotton that is includedin both the House and Senate versions of the farm bill legislation is a revenue-based insurance program for the cotton market, based on county level income. It is designed to complement a grower's current crop insurance or work as a stand-alone option.It's a novel concept. But here's the rub.