Crop Insurance Indemnities for 2013 Pass $7 Billion

December 18, 2013 04:07 AM
 

via a special arrangement with Informa Economics, Inc.

Corn moves into lead spot for indemnities paid out


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


Crop insurance indemnities for 2013 crops have now hit $7.134 billion, moving the loss ratio for the program to .61, according to Risk Management Agency (RMA) data.

This still puts indemnities for 2013 behind the pace seen for 2012 crops at this point a year ago when indemnities were at $8.738 billion on their way to a record level of $17.429 billion.

Payouts for corn also moved into the top spot for major commodities, rising to $2.365 billion with a loss ratio of .51. Wheat indemnities had been leading all crops as the data has come in for 2013 payouts, but corn displaced wheat in that spot as of Dec. 16.

Wheat and corn remain the only two major US crops where payouts under the program have exceeded $1 billion for the 2013 crop year so far.


2013 Crops

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

12/16/13

84.643

$4.677

$2.821

$2.365

.51

12/09/13

84.666

$4.678

$2.823

$2.116

.45

Cotton

12/16/13

9.767

$0.669

$0.438

$0.727

1.09

12/09/13

9.762

$0.669

$0.438

$0.720

1.08

Pasture & Rangeland

12/16/13

54.061

$0.196

$0.105

$0.141

.72

12/09/13

54.031

$0.195

$0.105

$0.141

.72

Peanuts

12/16/13

0.947

$0.046

$0.027

$0.011

.23

12/09/13

0.947

$0.046

$0.027

$0.009

.20

Rice

12/16/13

2.595

$0.061

$0.041

$0.107

1.75

12/09/13

2.596

$0.061

$0.041

$0.106

1.73

Sorghum

12/16/13

5.777

$0.276

$0.176

$0.259

.94

12/09/13

5.780

$0.277

$0.176

$0.240

.87

Soybeans

12/16/13

67.352

$2.488

$1.532

$0.650

.26

12/09/13

67.348

$2.488

$1.532

$0.603

.24

Burley Tobacco

12/16/13

0.066

$0.021

$0.012

$0.002

.11

12/09/13

0.066

$0.021

$0.012

$0.002

.10

Flue-Cured Tobacco

12/16/13

0.220

$0.047

$0.027

$0.061

1.29

12/09/13

0.220

$0.047

$0.027

$0.055

1.17

Wheat

12/16/13

48.423

$1.970

$1.242

$2.179

1.11

12/09/13

48.434

$1.971

$1.242

$2.169

1.10

TOTAL

12/16/13

295.623

$11.742

$7.256

$7.134

.61

12/09/13

295.616

$11.743

$7.257

$6.764

.58


Comments: While the loss ratio for the program continues to rise, it still remains well below the 1.0 level. Moving above 1.0 would mean that the level of indemnities paid out will have exceeded the total level of premiums paid into the program. The loss ratio for 2012 stands at 1.57 and marked the first time since the 2002 crop year that the loss ratio had been above 1.0.


 

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


 


 

 

 

 

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