2013 US Crop Insurance Payouts Top $1.57 Billion

August 7, 2013 06:58 AM
 

 

via a special arrangement with Informa Economics, Inc.

Several crops ahead of last year in terms of net acres insured


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U.S. crop insurance indemnities continue to rise, with increases noted this week for both 2013 and 2012. US crop insurance indemnities for 2013 crops reached $1.574 billion as of Aug. 5 while 2012 crop payouts climbed to $17.387 billion, according to Risk Management Agency (RMA) data.

For 2013, wheat remains the largest payout with indemnities at $937 million against $759 million paid out for 2012, but there are so far fewer net acres insured for 2013 crop wheat than there were in 2012.

Other crops that have more net acres insured compared to the prior year include Pasture and Rangeland and grain sorghum.

Crop – as of Aug. 5, 2013

Year

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

2012

81.449

$4.330

$2.689

$11.816

2.73

2013

60.094

$3.317

$1.992

$0.117

.04

Cotton

2012

11.422

$0.836

$0.554

$1.092

1.31

2013

7.089

$0.511

$0.333

$0.257

.50

Pasture & Rangeland

2012

47.929

$0.163

$0.088

$0.179

1.10

2013

51.140

$0.185

$0.099

$0.076

.41

Peanuts

2012

1.320

$0.088

$0.052

$0.026

.30

2013

0.590

$0.029

$0.017

$0.0005

.02

Rice

2012

2.100

$0.055

$0.038

$0.041

.75

2013

1.282

$0.033

$0.022

$0.026

.78

Sorghum

2012

4.680

$0.214

$0.138

$0.402

1.88

2013

4.730

$0.227

$0.145

$0.021

.09

Soybeans

2012

65.181

$2.351

$1.473

$2.128

.91

2013

45.784

$1.675

$1.024

$0.039

.02

Burley Tobacco

2012

0.082

$0.026

$0.015

$0.036

1.35

2013

0.034

$0.011

$0.006

$0.000

.00

Flue-Cured Tobacco

2012

0.201

$0.039

$0.022

$0.041

1.05

2013

0.120

$0.026

$0.014

$0.000

.00

Wheat

2012

46.528

$1.788

$1.114

$0.759

.42

2013

44.135

$1.808

$1.140

$0.937

.52

TOTAL

2012

282.692

$11.108

$6.973

$17.387

1.57

2013

231.951

$8.883

$5.483

$1.574

.18

 

Comments: The popularity of the program continues as there are already more net acres insured on some 2013 crops than there were in 2012. Also, the loss ratio for 2012 at 1.57 marks the first time since 2002 that the loss ratio for the program has been at 1.0 or above. That loss ratio does not reflect losses for the program, but is figured solely by taking the level of indemnities paid out compared to the total premiums paid into the program.

 

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