This is better than government crop insurance, which covers only 65% of average yields.
But he calls new subsidies for his crop insurance critical, since farming is so unpredictable.
Popcorn growers slipped in a provision making sure they, too, get government help with crop insurance.
The Pawelski family bought catastrophic crop insurance, but they are among many farmers who believe it is almost useless.
Crop insurance and his own prudence, conservatism as he calls it, should mean he will weather the lack of storm.
Mr. SCOTT BULLING (Crop Insurance Manager, Oklahoma Farm Bureau): They may have their hay insured for, say, somewhere 20 dollars per round bale.
As the hot and dry weather persists, farmers face potential losses in spite of federal crop insurance meant to soften the blow to U.S. agriculture.
Scott Bulling is crop insurance manager with the Oklahoma Farm Bureau.
Watchdog groups warn the savings may not last because the crop insurance has no caps, and in bad crop years, the cost to taxpayers could explode.
Texans in the rice business said they could probably stay afloat this year, thanks in part to crop insurance, but they worried about another year of interrupted irrigation water.
"If we didn't have the crop insurance, then it's going to take, it takes three, four, five years of good years to make up for that one loss, " Schmidt said.
The Department of Agriculture has also introduced a pilot programme in Nebraska and Iowa for revenue insurance, which, unlike the old crop insurance, guarantees farmers against falling prices as well as lost crops.
The state used to be among the poorest in the country, relying on the federal government to prop up its farmers with crop insurance and its elderly (who are legion) with Medicare and Social Security.
Within the last month, USDA has opened the Conservation Reserve Program to emergency haying and grazing, has lowered the borrower interest rate for emergency loans, and has called on crop insurance companies to provide more flexibility to farmers.
House rules prevent lawmakers from raising taxes to pay for spending hikes, so savings are expected to come in the form of cuts in payments to crop insurance companies, which are reaping high profits due to high crop prices.
The agency also reported that crop insurance companies have agreed to allow for a "short grace period for farmers on insurance premiums in 2012, " giving farmers an extra 30 days to make payments without interest penalties on their unpaid premiums.
"You would have to pay far more in these disaster programs, as opposed to a crop insurance program where a farmer can depend on it and a lender can depend on it, and it's over the long term, " Roberts said.
"We eliminated four different agriculture subsidies and instead have moved to risk management so we'll support farmers and ranchers when there's a loss, where there's a weather loss, it's a price loss, through crop insurance, through other things where the farmer has some skin in the game, " Stabenow said.
He had been in America for two years, working as a crop-insurance agent, when the Beatles started sweeping America.
One of the results is an unprecedented crop-insurance program called Revenue Maximizer.
These kinds of adverse-selection effects crop up at the company level in health insurance, too.
They impose draconian penalties on suppliers for failing to deliver agreed quantities of fresh fruits and vegetables during the year, which force farmers to grow a much bigger crop than they need as a form of insurance against poor weather and other factors that may reduce their yield.
The meager payment is largely the result of an insurance calculation which pays off based on the stage of crop development that has been achieved when the damage occurs.
As a result, Americans increasingly are becoming their own bank tellers, loan officers, insurance adjusters, checkout clerks, restaurant order takers, citrus-crop inspectors and mall concierges.
Still, economists say the extent of federal insurance coverage -- which includes about 85% of the nation's crop acreage -- will help protect farmers against catastrophic income losses.
About 90% of the corn acreage is backed by a generously subsidized federal insurance program, described by Steven Colbert as "Obamacare for the corn, " so crop farmers will be just fine.
CNN: Extreme heat and droughts -- a recipe for world food woes
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