STAX will be available for 2015 crop year
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WASHINGTON, Aug. 12, 2014 - USDA's Risk Management Agency (RMA) today announced that the Stacked Income Protection Plan (STAX) will be available to upland cotton producers through the federal crop insurance program beginning with the 2015 crop year.
STAX is one of the new risk management options included in the 2014 Farm Bill.
“STAX will provide upland cotton producers with an additional tool beginning with the 2015 crop year. We want to make as much information available now to assist with farmers' risk management planning,” said RMA Administrator Brandon Willis.
For the 2015 crop year, STAX will be available for upland cotton in all counties where federal crop insurance coverage for upland cotton is currently offered.
STAX is an area-based revenue policy that may be purchased on its own, or in conjunction with another companion upland cotton crop insurance policy, USDA noted in its announcement. The program may begin paying when revenue drops below 90 percent of the expected revenue for the area and a full indemnity may be payable when area revenue falls below 70 percent of the expected level. The amount of actual coverage and indemnity will depend on a producer's choice of a trigger yield, coverage range and other elections made under the STAX policy.
National Cotton Council Chairman Wally Darneille said STAX would provide cotton farmers with a “solid risk management mechanism.”
“We appreciate RMA's timely implementation of STAX and for making it available for upland cotton in all counties where federal crop insurance coverage for upland cotton is currently offered,” he said.
Until STAX is available, USDA's Farm Service Agency will accept enrollment for the Cotton Transition Assistance Program (CTAP) through Oct. 7, 2014, to provide interim payments to cotton producers during the 2014 crop year.
CTAP applications approved before Oct. 1 are subject to congressionally mandated automatic reductions of 7.2 percent for the 2014 crop year, and applications approved after Oct. 1 will be reduced by the required 7.3 percent for the 2015 crop year. These reductions to program payments are required under the Budget Control Act of 2011.
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