Crop Insurance Indemnities Close in on $3.6 Billion for 2013 Crops

September 18, 2013 06:37 AM
 

via a special arrangement with Informa Economics, Inc.

2012 tally remains at just over a record $17.4 billion


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


Indemnities for 2013 crops reached $3.585 billion as of Sept. 16, still far below the record payouts of $17.407 billion made for 2012 crop losses, according to Risk Management Agency (RMA) data.

Wheat remains the largest payout so far at $1.663 billion and is the first crop to break the $1 billion mark for the 2013 crop year. Indemnities for corn stand at $648 million and another $569 million for cotton with soybean payments put at $213 million. The tallies for those crops in 2012 were $759 million for wheat, $11.825 billion for corn, $1.093 billion for cotton and $2.129 billion for soybeans.

The payouts so far have put the loss ratio (total premiums paid in against indemnities paid out) at .31, well below the 1.57 mark registered for 2012 losses. The 2012 crop year marked the first time since 2002 with a loss ratio of 1.0 or greater.


 

Crop as of Sept. 16, 2013

Year

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

2012

81.458

$4.330

$2.689

$11.825

2.73

2013

84.243

$4.680

$2.824

$0.648

.14

Cotton

2012

11.425

$0.836

$0.554

$1.093

1.31

2013

9.660

$0.665

$0.435

$0.569

.86

Pasture & Rangeland

2012

48.187

$0.164

$0.089

$0.182

1.11

2013

53.875

$0.194

$0.104

$0.108

.56

Peanuts

2012

1.323

$0.088

$0.052

$0.027

.31

2013

0.931

$0.046

$0.027

$0.001

.03

Rice

2012

2.100

$0.055

$0.038

$0.041

.75

2013

2.070

$0.052

$0.035

$0.044

.85

Sorghum

2012

4.682

$0.214

$0.138

$0.402

1.88

2013

5.765

$0.276

$0.176

$0.093

.34

Soybeans

2012

65.191

$2.351

$1.473

$2.129

.91

2013

66.691

$2.467

$1.519

$0.213

.09

Burley Tobacco

2012

0.082

$0.026

$0.015

$0.036

1.35

2013

0.062

$0.020

$0.011

$0.0006

.03

Flue-Cured Tobacco

2012

0.201

$0.039

$0.022

$0.041

1.05

2013

0.209

$0.045

$0.026

$0.001

.03

Wheat

2012

46.546

$1.789

$1.114

$0.759

.42

2013

48.326

$1.967

$1.239

$1.663

.85

TOTAL

2012

283.021

$11.112

$6.976

$17.407

1.57

2013

293.138

$11.679

$7.215

$3.585

.31


Total net acres insured stand at 293.138 million, the highest level ever for the program. While the total net acres insured includes 54 million in pasture and rangeland coverage – acreage not included in what USDA reports each year as "principal crops" planted in the US (corn, sorghum, oats, barley, rye, winter wheat, Durum wheat, other spring wheat, rice, soybeans, peanuts, sunflower, cotton, dry edible beans, potatoes, sugarbeets, canola, and proso millet), when those pasture and rangeland acres are subtracted, it still means that 73.4 percent of acreage planted to principal crops is covered by some type of crop insurance policy.

Pasture and rangeland coverage began with the 2007 crop year with 28.4 million net insured acres, and that also marked the first year for the program that more than 250 million net acres were insured.

 CImap

 


Comments: As shown in the map above, the payouts are concentrated in Plains HRW wheat areas where drought conditions have affected crops and in northern Iowa/southern Minnesota and North Dakota where prevented planting acreage swelled this year due to unfavorable conditions this spring, providing growers in those locations with perhaps a critical infusion of money given their inability to plant a crop for harvest.


 

 

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


 


 

 

 

 

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close