2013 Crop Insurance Indemnities Rise to $3.2 Billion

September 11, 2013 03:01 AM
 

via a special arrangement with Informa Economics, Inc.

Losses currently remain concentrated in Plains HRW wheat states where harvest is complete


NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


U.S. crop insurance indemnities for 2013 have reached $3.204 billion, still far shy of the record payouts of $17.413 billion made for 2012 crops as of Sept. 9, according to Risk Management Agency (RMA) data.

Wheat remains the largest payout for 2013 so far, with $1.537 billion paid out so far – nearly 48 percent of the 2013 indemnities.

Corn continues to increase, reaching $520 million while cotton is at $543 million and $175 million has been paid out to soybean producers.

Cropas of Sept. 9, 2013

Year

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

2012

81.459

$4.330

$2.689

$11.828

2.73

2013

83.058

$4.677

$2.824

$0.520

.11

Cotton

2012

11.425

$0.836

$0.554

$1.095

1.31

2013

9.612

$0.662

$0.433

$0.543

.82

Pasture & Rangeland

2012

48.182

$0.165

$0.089

$0.182

1.11

2013

53.860

$0.194

$0.104

$0.108

.56

Peanuts

2012

1.323

$0.088

$0.052

$0.027

.31

2013

0.933

$0.046

$0.027

$0.001

.03

Rice

2012

2.100

$0.055

$0.038

$0.041

.75

2013

2.075

$0.052

$0.035

$0.041

.77

Sorghum

2012

4.681

$0.214

$0.138

$0.402

1.88

2013

5.753

$0.276

$0.176

$0.066

.24

Soybeans

2012

65.193

$2.351

$1.473

$2.129

.91

2013

66.384

$2.456

$1.513

$0.175

.07

Burley Tobacco

2012

0.082

$0.026

$0.015

$0.036

1.35

2013

0.061

$0.020

$0.011

$0.0005

.02

Flue-Cured Tobacco

2012

0.201

$0.039

$0.022

$0.041

1.05

2013

0.209

$0.045

$0.026

$0.0008

.02

Wheat

2012

46.546

$1.789

$1.114

$0.759

.42

2013

48.163

$1.961

$1.235

$1.537

.78

TOTAL

2012

283.019

$11.112

$6.976

$17.413

1.57

2013

292.352

$11.651

$7.200

$3.204

.28

Those states topping the list for 2012 indemnities are not necessarily on top of the payouts made so far for 2013 crops:

State

2012
(billion dollars)

2013
(billion dollars)

Colorado

$0.278

$0.190

Illinois

3.504

0.058

Indiana

1.482

0.019

Iowa

2.014

0.182

Kansas

1.372

0.442

Minnesota

0.246

0.186

Nebraska

1.159

0.046

North Dakota

0.247

0.216

Ohio

0.407

0.013

Oklahoma

0.211

0.221

South Dakota

1.112

0.127

Texas

1.417

1.057

US TOTAL

$17.413

$3.204


Comments: The program remains a popular choice with producers with most opting for some type of additional coverage such as yield protection, risk protection or actual production history coverage – 93.8 percent of net acres insured in 2012 were covered by that type of policy while 94.6 percent of net acres insured for 2013 are covered by some type of additional coverage.


 

 

NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


 


 

 

 

 

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