Texas has been struggling to cope with one of the most severe droughts in the state’s history. The dry conditions have sparked a rash of wildfires throughout the state, which have burned crops and homes alike. The state’s insurers have been working to mitigate the damage caused by the extreme conditions and for those that lost their homes to fire, recovery is quickly becoming a reality. Good news is on the horizon for thousands of farmers who had their crops destroyed by the drought as well.
More than 41,000 Texan farmers will be receiving $1.6 billion in insurance payouts from the national crop insurance program in the coming months. According to the U.S. Agriculture Department, the money will help farmers recover from the havoc caused by the drought, but notes that it will only cover a third of the insured losses incurred throughout the state. Economists with the Texas AgriLife Extension Services, an educational agency focused on agriculture, claims that the cost of the drought on the state’s agriculture industry totals $5.2 billion.
Crop insurance is becoming an important issue as the dry conditions in Texas continue. There is no end in sight for the drought, which could have dire implications for state farmers that have already been distressed by the disaster. The U.S. Agriculture Department notes that adequate insurance coverage for crops could become a lifeline for farmers during this time of extreme duress.