Punkin Center Gins

How Arbol saved a Texas cotton gin during a crop disaster

Aug 11, 2022

Summary

To protect against another missed crop, Punkin Center Gins owner Al Crisp purchased Arbol’s first-of-its-kind yield product for cotton. Arbol’s cotton yield product leverages independent climate data from dClimate to provide protection for businesses in the cotton industry against yield losses. Having a yield product in place as a safety net, helped Al Crisp protect his business.

…the 6,600 bales we ginned was just about enough to pay the light bill…with very little cotton there was no income so this {payment from Arbol} was going to be a large chunk of the income that comes in for my bank this year.

Al Crisp

Owner, Punkin Center Gins

The facts

Punkin Center only processed 6,600 bales of cotton in 2020 – just over a week’s worth of ginning during a normal year. The Texas ginner experienced financial disaster because of low cotton yields that would have devastated their business without a payment from Arbol.

Key takeaways

Arbol’s yield product paid Punkin Center Gins due to low cotton yields, quickly and without lengthy claims or adjustment processes using data, saving the business.

Climate events that adversely affect crop yields – like drought, flooding, etc. – are unpredictable and, potentially, financially devastating. Events like these are real, frequent, and increasing in number for thousands of agricultural companies.

Our Process

Parametric Yield Product: A first-of-its-kind-solution offered by Arbol.

Punkin Center Gins chose the crops, counties and limits for its program
Trusted, third-party data, not adjusters, determined the payout, automatically
Payment from Arbol saved Punkin Center Gins from financial disaster

Our solution

Arbol’s yield products are backed by tamper-proof U.S. Department of Agriculture data from dClimate. The program allows gin operators and other cotton businesses to get paid quickly and objectively based on independent data as a protection against bad weather impacting yield.

Get in touch with one of our experts today to learn more about products like this!

John Coleman

Head of Business Development, US Agri-Solutions

john.coleman@arbol.io

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