Crop Insurance Indemnities at $15.9 Billion for 2012 Crops

March 19, 2013 03:27 AM
 

Payouts to farmers for 2012 crops have reached $15.9 billion as of March 18, up about $150 million from the prior week and pushing the loss ratio to 1.44 for the federal crop insurance program, according to Risk Management Agency (RMA) data.

The loss ratio is the largest since 1993 when it reached 2.19. But that for payouts on 83.725 million net acres insured and indemnities of $1.665 billion.

Corn indemnities rose slightly for the week, with cotton ($1.075 billion) and soybeans ($2.018 billion) the only other crops with $1 billion or more in indemnities. As an example of how large the corn payouts have grown to for 2012 crops, the indemnities for 2012 corn alone are less than 3 percent away from the total of $10.853 billion that was paid out on all 2011 crops, the prior record mark for indemnities.

Crop

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

03/18/13

81.294

$4.320

$2.683

$10.596

2.45

03/11/13

81.264

$4.319

$2.682

$10.463

2.42

Cotton

03/18/13

11.404

$0.835

$0.553

$1.075

1.29

03/11/13

11.406

$0.835

$0.553

$1.071

1.28

Pasture & Rangeland

03/18/13

48.114

$0.164

$0.089

$0.180

1.10

03/11/13

48.108

$0.163

$0.088

$0.179

1.10

Peanuts

03/18/13

1.314

$0.087

$0.052

$0.024

.28

03/11/13

1.313

$0.087

$0.051

$0.024

.28

Rice

03/18/13

2.105

$0.055

$0.039

$0.040

.72

03/11/13

2.105

$0.055

$0.039

$0.040

.72

Soybeans

03/18/13

65.028

$2.344

$1.469

$2.018

.86

03/11/13

65.029

$2.344

$1.469

$2.005

.86

Wheat

03/18/13

46.385

$1.783

$1.110

$0.732

.41

03/11/13

46.368

$1.782

$1.110

$0.731

.41

TOTAL

03/18/13

282.224

$11.079

$6.955

$15.915

1.44

03/11/13

282.167

$11.076

$6.953

$15.750

1.42

 


Comments: The rate of increase is slowing as more and more data are finalized from states. A year ago, indemnities were also still rising, reaching about 95 percent of the eventual "final" level of $10.853 billion. If the pattern tracks the same on a percentage basis for 2012 crops, that would suggest final indemnities of over $16.6 billion for 2012 crops.  


 

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