The USDA announced $12.1 million in indemnity payments to Florida farmers for hurricane-related losses under the Hurricane Insurance Protection-Wind Index program.
The U.S. Department of Agriculture (USDA) announced last Friday that Florida farmers affected by Hurricane Debby will receive a total of $12.1 million in indemnity payments through the Hurricane Insurance Protection-Wind Index (HIP-WI) program.
Florida farmers will receive $11.8 million specifically for hurricane-related losses caused by Debby, with an additional $300,000 allocated for damages due to the storm’s tropical storm conditions. Producers do not need to file individual claims to receive these payments, as they are automatically disbursed based on predetermined criteria.
Florida’s $12.1 million in payments, while significant, is part of a larger regional effort. For example, Georgia will receive $45.6 million, North Carolina $97.8 million, and South Carolina $54.3 million, primarily for losses related to tropical storms. The allocated funds build on the nearly $50 million already paid out earlier this year for damages from Hurricane Beryl.
“Hurricane Debby caused devastating damage across the southeast impacting many agricultural operations,” said USDA’s Risk Management Agency Administrator Marcia Bunger. “The Risk Management Agency’s hurricane and tropical storm endorsement provides added protection for producers who want more coverage options. We understand the importance of timely payments that help producers overcome natural disasters and assist with recovery efforts.”
Indemnity payments are compensations made to policyholders under an insurance agreement for losses incurred due to covered events. In this instance, the payments are designed to help Florida farmers offset financial losses resulting from the hurricane and its related tropical storm conditions.
The HIP-WI program, launched by the USDA’s Risk Management Agency (RMA) in 2020, provides supplemental insurance coverage for hurricane-related damages. Payments are automatically triggered when a county experiences sustained hurricane-force winds, as verified by data from the National Hurricane Center. The program’s scope was expanded last year to include a Tropical Storm Option, which covers named tropical storms that bring sustained winds exceeding 34 knots and significant precipitation.