Why is Cotton Crop Insurance Neccesary?

Cotton is a high input and high value crop which often makes up a high proportion of a farm's total revenue.  As such it's important to ensure the crop is adequately covered as losses in the field can significantly impact on a grower’s profitability.

What Can Be Covered?

Crops can be insured for loss of revenue as a direct consequence of hail and fire.  The policies provide a variety of additional benefits including:

  • Replant Subsidy
  • Additional Expenses
  • Loss of Refuge Crops
  • Chemical Overspray

Most policies also offer a range of options including Seed Cotton insurance, Quality Downgrade and a Late Harvest Crop Benefit.

Whilst irrigated crop yields tend to be more predictable, dryland crop yields can
be highly variable creating their own unique insurance requirements and as such need to be treated very carefully.

Rainfall Downgrade insurance is also available.

What Does it Cost?

The cost of the cover varies quite dramatically depending on the location of the
crop, the type of policy, selected options and excess.

The Cotton Insurance Market

The cotton insurance market is well developed and competitive and the products can be quite complex which is a key advantage in using an insurance broker like AgriRisk.

AgriRisk takes the hard work out of choosing insurance.

Our team of experienced and friendly brokers will:

Determine your individual needs, including risk profile and budget

Approach a range of insurers to determine the most appropriate products for your business

Search the insurance market, and negotiate the right cover and competitive terms.

Provide expert advice and make recommendations about the right risk management solution for your needs.

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