West Gaines Seed, Inc., a leading seed provider in Seminole, Texas, partnered with Arbol to address climate-related risks impacting their cotton seed production and processing operations. Specializing in small grains and cottonseed production and processing, the company operates some of the most advanced seed delinting and treating facilities in the country. With multiple locations across Texas, Louisiana, and Oklahoma, West Gaines Seed serves a wide range of agricultural clients. Facing unpredictable weather patterns and yield volatility, West Gaines Seed implemented Arbol’s Area Yield Program (AYP) to create a financial safety net, ensuring business continuity and client support despite potential crop yield shortfalls.
As a key player in the cotton seed industry, West Gaines Seed needed a solution to protect its operations and support its clients in the face of these unpredictable climate risks.
Arbol proposed a tailored parametric crop yield index derivative using the Area Yield Program (AYP). This county-level yield index product was designed to protect West Gaines Seed against revenue losses due to low crop yields.
The policy covered specific location IDs in Texas, ensuring that payouts were aligned with the actual yield performance. The solution accounted for different irrigation practices in each county, with custom weightings for irrigated and non-irrigated cotton production.
This protection significantly reduces their financial exposure to climate-related risks.
The success of this parametric solution may lead to expanded use of similar risk management strategies across their operations and for other crops.
Is your agribusiness exposed to climate-related yield risks? Discover how Arbol’s Area Yield Program can provide tailored protection for your operations. Contact us today to learn how parametric solutions can safeguard your business against unpredictable weather patterns and yield volatility.