As a cotton farmer in West Texas, last year I felt that I had about as much of a chance of seeing a good soaking rain as I did of running into the Tooth Fairy when I stopped by my local dentist.<\/p>\n
Unfortunately for the area farmers, much of the cotton in this part of Texas that was planted never even sprouted, leaving farmers hoping for a miracle but expecting the worst.\u00a0 Luckily, for the vast majority of them, they had purchased a risk management tool that would serve as a backstop when a disaster like this strikes, ensuring that they would survive to farm yet another day.\u00a0 That tool was crop insurance.<\/p>\n
Crop insurance is the risk management tool preferred by most farmers across the country \u2013 about 80 percent of eligible U.S. lands are covered by a policy \u2013 because it combines the efficiency of the private sector with the universality of the public sector.<\/p>\n
One of the most popular efficiencies of this public\/private partnership afforded to those who purchase crop insurance policies is its speed of delivery when crops fail or markets crash.\u00a0\u00a0 Typically, when a farmer files a claim, the crop insurance company that holds that policy will have the indemnity to the farmer within thirty days of the finalization of the paperwork.\u00a0 This is real money coming to the farmer in real time, allowing him to plant again or plan to plant the next year.<\/p>\n
Government programs, on the other hand, while very well intentioned, just aren\u2019t realistic, at least not from a business point of view.\u00a0 For example, the SURE program, which many farmers depended on, is just now \u2013 in early 2012 \u2013\u00a0 providing benefits to farmers who suffered losses in 2009.\u00a0 That\u2019s just too long to wait for assistance if it\u2019s really going to be helpful or effective.<\/p>\n
Crop insurance, on the other hand, gets to the growers quickly, allowing them to bounce back from loss and prepare for the next season.\u00a0 Many of the cotton farmers in Texas who lost nearly everything last summer, for example, had their indemnity payments in hand before Labor Day.\u00a0 That makes a world of difference for somebody who has suddenly lost their livelihood and won\u2019t be able to farm again if help doesn\u2019t arrive soon.<\/p>\n
Another reason why crop insurance has become the most preferred tool in almost every farmer\u2019s risk management tool belt is because the individualized nature of each policy.\u00a0 Instead of a big government plan allotting a specified amount of help based on an average amount of loss, crop insurance policies are tailored to the farmer, his or her tolerance for risk, and the strengths and weaknesses of their farm.<\/p>\n
Each spring, a crop insurance agent meets with the individual farmer and together, they come up with a plan to manage that specific farm\u2019s risk.\u00a0 It\u2019s not the federal government\u2019s plan; nor is it the state\u2019s plan or the county\u2019s plan.<\/p>\n
It\u2019s the farmer\u2019s plan.\u00a0 \u00a0And who would know better than the individual farmer about what their piece of land can handle, what kinds of stress it can tolerate, and how much loss they can withstand as an individual.<\/p>\n
While farmers are charged with raising the food, feed and fiber to feed and clothe our great nation, the nation realizes that we are merely individuals who can easily be stomped on by an angry and unforgiving Mother Nature.\u00a0 That\u2019s why it\u2019s in the nation\u2019s best interest \u2013 as well as the best interest of farmers \u2013 to ensure that moving forward, a robust and effective crop insurance policy is part of any Farm Bill discussion.<\/p>\n
I didn\u2019t see the Tooth Fairy the last time I went to the dentist, but thankfully I have seen some rain.\u00a0 Some, but not enough.\u00a0 And according to most experts, this drought is supposed to continue.\u00a0 But regardless, for those of us who farm for a living, with the purchase of a crop insurance policy, we have purchased our chance to farm yet another year to feed, clothe and fuel the nation we love.<\/p>\n
Shawn L. Holladay, chairman of the American Cotton Producers Farm Policy Task Force, lives in Lubbock, Texas.<\/p>\n