Following announcement of final 2022 county yields for Upland cotton on June 22, 2023, the USDA Risk Management Agency has begun sending final indemnity payments to Upland cotton producers who purchased 2022 crop year Supplemental Coverage Option (SCO) or Stacked Income Protection Plan (STAX) policies. For most of Texas the combination of below average yields and Upland cotton harvest prices set the stage for both SCO and STAX payments to be triggered in most counties.
Looking specifically at 2022 STAX policies purchased in PCG’s service area, all of PCG’s member counties triggered STAX indemnities at some level. The amount of loss across the region varied significantly. Several counties in the northern part of the High Plains triggered less than maximum payments, while other counties triggered maximum payments for both irrigated and dryland practices.
Reviewing the counties individually shows three High Plains counties (Potter, Roberts and Carson) that triggered STAX payments at less than maximum levels for both irrigated and dryland acres. Four other High Plains counties ( Deaf Smith, Hutchinson, Moore and Oldham) triggered a maximum payment for non-irrigated cotton, but less than the maximum payment for the irrigated practice. One county (Gray) triggered a maximum irrigated STAX indemnity, but less than a maximum payment on non-irrigated acres.