A Look Into Hurricane Protection

BY KYLIE SELLMAN

urricane Harvey made landfall on the Texas coast in August of 2017, being the most catastrophic hurricane to hit the United States in over a decade. This landmark event caused Texas Agriculture to lose an estimated $100 million in cotton crop alone, resulting in lingering effects on farmers for years to come. A relatively new program could protect farmers from these massive losses caused by future hurricanes. Hurricane Insurance Protection - Wind Index, commonly referred to as HIP, provides coverage on over 70 crops for counties along the Gulf of Mexico, Atlantic, Hawaii, and their adjacent counties. HIP is an insurance policy that must be renewed annually and will be paid within 30 days following the release of counties identified by the Federal Crop Insurance Corporation (FCIC). You may be wondering, what if my crops are not affected by a hurricane for several years? The producer pays an annual premium for insurance coverage and would receive an indemnity if the county that they insured in or an adjacent county sustained hurricane force winds with a named storm and would pay the full policy limits. There is no adjustment procedure, and the amount of the indemnity is based on the liability of underlying Federal Crop Insurance Policies. Historically, for example, Hidalgo County, Texas would have triggered a loss 4 out of the last 20 years. Based on Hidalgo County rates and federal government subsidy, a farmer could sustain 1 loss every 20 years and have no out of pocket expense. It is

Hpossible that a farmer could pay in for 19 years and in the 20th year receive an indemnity to cover all past premiums. Currently, if a farmer were to look back on historic tropical storm averages, for every dollar paid in premium, they would receive four dollars in indemnity.

In 2017, Hurricane Harvey made landfall in Nueces County, Texas, even though it made landfall at this point, Hidalgo County would have still qualified for a HIP payment because Kleberg and Kennedy County both sustained hurricane force winds and they are adjacent to one another. Willacy County would have also qualified for payment as it is adjacent to Kennedy County while Cameron County would not have qualified for a claim. In insurance terms, this is considered a group risk program rather than an individual farm based program. All group risk programs subsidized by the USDA Risk Management Agency are subsidized at a higher rate than the underlying individual farmer based programs.

The program was introduced for the first time in 2020, and many agents were reluctant to offer it to their producers in fear that the farmers would not want to pay into an unproven insurance protection policy. The agents that I interviewed also felt this way until they took the time to analyze the program and all that it has to offer. Since the Risk Management Agency (RMA) announced the program and companies set up quoting programs for farmers to evaluate their individual farming operations, there has been an overwhelming amount of participation.

The Hurricane Insurance Protection - Wind Index

Endorsement gives farmers the opportunity to protect themselves from future tropical storms that may affect them. This program has the ability to financially stabilize farmers along the Texas coastline following these catastrophic events.

For more information on Hurricane Insurance Protection - Wind Index, visit the United States Department of Agriculture Risk Management Agency website at: https://www.rma.usda.gov/

en/Topics/Hurricane-Insurance-Protection-Wind-Index

Upcoming North Alamo WSC Construction Projects…

NORTH ALAMO WATER SUPPLY CORPORATION USDA RURAL DEVELOPMENT CAPITAL IMPROVEMENT PHASE 2 WATER TREATMENT PLANT NO. 5 EXPANSION PROJECT

North Alamo Water Supply Corporation is currently working on an Energy Efficient brackish Groundwater Desalination Project with assistance from the engineering firm of Freese and Nichols and funding from TWDB and the Bureau of Reclamation. The project consists of retrofitting it’s Donna and Doolittle reverse osmosis plants with energy efficient membranes to help lower energy costs and increase the production of water. The project also includes the addition of 3 new wells to supplement the capacity of each of the R.O. plants including the Owassa R.O. The upgrades to the existing facilities and the addition of new wells at Owassa, Doolittle and Donna will increase brackish groundwater desalination supplies by nearly 3 million gallons per day. This project is part of the Corporations Capital Improvement Plan as it continues to serve its membership and provide sustainable water improvements to its system.

he proposed project is to expand Water Treatment Plant No. 5 from an existing 11 Million Gallons Per Day facility to a total Treatment capacity T of 16 Million Gallons Per Day by adding processing facilities to provide for an additional 5 Million Gallons Per Day. The facility is located north of Donna, Texas along Victoria Road. The improvements include the construction of a new raw water lift pump station, a rapid mix basin, two clarifiers, a four-cell filter system, a transfer well and pumps, a chemical feed system, and operations building. The construction for the expansion will begin January of 2023 with a completion date of December 2024. The construction cost for the improvements is valued at approximately $14,500,000.00

NORTH ALAMO WATER SUPPLY CORPORATION USDA RURAL DEVELOPMENT CAPITAL IMPROVEMENT PHASE 2 WATER TREATMENT PLANT NO. 5 24-INCH & 16-INCH TRANSMISSION WATERLINE PROJECT

This project consists of approximately 16,000 lineal feet of 16-inch PVC C-900 waterline and approximately 5,800 lineal feet of 24-inch PVC C-900 waterline. The improvements will begin with the installation of the said 24-inch waterline at Water Treatment Plant No. 5 located north of Donna, Texas along Victoria Road. The proposed 24-inch line will continue north along Victoria Road to Mile 11 ½ North Road, where it will run west along Mile 11 ½ North Road to FM 493 and transition to a 16-inch waterline. The 16-inch waterline will continue west along Earling Road to Val Verde Road (FM 1423) and connect to an existing 12-inch waterline. The construction for these waterlines will begin January of 2023 with a completion date of January 2024. The construction cost for the improvements is valued at approximately $3,000,000.00. Both of these projects will enhance water pressure and add capacity for the area served in Western and Eastern Hidalgo County as well as Willacy County.