Crop Insurance Indemnities for 2012 Losses Reach $17.37 Billion

June 26, 2013 05:17 AM
 

via a special arrangement with Informa Economics, Inc.

Net acres insured for 2013 now above 100 million


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


Crop insurance indemnities paid out for 2012 losses now stand at $17.370 billion, up slightly from the prior week and continuing to add to the record level of payouts under the crop insurance program, according to Risk Management Agency data.

The slight uptick did not change the overall loss ratio for the program which stands at 1.56, keeping 2012 the first year since 2002 that the loss ratio has exceeded 1.0. The rate of increase in the indemnities also continues to dwindle, a situation typically seen under the program.


Crop

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

06/24/13

81.424

$4.328

$2.688

$11.806

2.73

06/17/13

81.417

$4.328

$2.688

$11.802

2.73

Cotton

06/24/13

11.416

$0.836

$0.554

$1.092

1.31

06/17/13

11.411

$0.835

$0.553

$1.092

1.31

Pasture & Rangeland

06/24/13

48.152

$0.164

$0.089

$0.181

1.10

06/17/13

48.149

$0.164

$0.089

$0.182

1.11

Peanuts

06/24/13

1.319

$0.088

$0.052

$0.026

.29

06/17/13

1.319

$0.088

$0.052

$0.026

.29

Rice

06/24/13

2.106

$0.055

$0.039

$0.041

.74

06/17/13

2.106

$0.055

$0.039

$0.041

.74

Sorghum

06/24/13

4.677

$0.214

$0.138

$0.402

1.88

06/17/13

4.677

$0.214

$0.138

$0.402

1.88

Soybeans

06/24/13

65.162

$2.350

$1.472

$2.128

.91

06/17/13

65.148

$2.349

$1.472

$2.128

.91

Burley Tobacco

06/24/13

0.082

$0.026

$0.015

$0.035

1.33

06/17/13

0.082

$0.026

$0.015

$0.035

1.33

Flue-Cured Tobacco

06/24/13

0.201

$0.039

$0.022

$0.041

1.05

06/17/13

0.201

$0.039

$0.022

$0.041

1.06

Wheat

06/24/13

46.469

$1.787

$1.113

$0.758

.42

06/17/13

46.471

$1.786

$1.113

$0.758

.42

TOTAL

06/24/13

282.767

$11.103

$6.970

$17.370

1.56

06/17/13

282.729

$11.101

$6.969

$17.362

1.56


For 2013, the level of net acres insured has finally reached 100 million, standing at 103.575 million. That compares to 120.776 million net acres insured for 2012 crops at this point a year ago. 2012 net insured acres eventually reached 282.729 million for 2012 crops.

Farmers also remain fully committed to policies that offer something beyond just catastrophic coverage, as 94.8 percent of all 2013 policies are above the basic coverage. That compares to 93.8 percent for 2011 crops and 92.7 percent for 2010 crops.


Comments: The program remains very popular with farmers, especially given the payouts made for the 2012 growing season. And with prevented planting issues and water-related losses likely for 2013, it will be interesting to see how the indemnities run for the 2013 growing season.


 

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


 


 

 

 

 

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