• Dryland cotton growers can utilise a rainfall index to protect themselves from insufficient rainfall during the planting window, resulting in a failure to get the crop in and away.
• Irrigated growers with stretched water, or dryland growers relying on in-crop rainfall can also utilise a rainfall index in the back-end of the season to cover potential yield losses due to insufficient rainfall.
“With cotton prices currently around $600+ per bale, the financial consequences of a no plant or significant yield reduction due to insufficient rainfall could be substantial, and weather index products become a real option,” Norm said.
“Several global weather underwriters have both the capacity and appetite for these types of risks so the cost of these covers are more competitive than ever.
“Cover must be in place one month ahead of the risk period, so contact your Account Manager for more information as soon as possible,” he said.