Crop Insurance Indemnities Hit $5.215 Billion for 2013 Crops

November 5, 2013 11:30 PM
 

via a special arrangement with Informa Economics, Inc.

Wheat indemnities still the highest as of Nov. 4 


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


Indemnities under the federal crop insurance program on 2013 crops have reached $5.215 billion as of November 4 with the loss ratio edging up to .45, according to Risk Management Agency (RMA) data.

Wheat remains the top payout for crops thus far at $2.062 billion with a loss ratio of 1.05. Of the major crops, only cotton has a loss ratio of over 1.0 as indemnities on cotton have reached $674 million with the loss ratio at 1.02.

So far, 39.5 percent of the payouts made for 2013 crops have gone for wheat.

2013 Crops

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

11/04/13

83.599

$4.615

$2.785

$1.190

.26

10/28/13

84.570

$4.675

$2.820

$1.148

.25

Cotton

11/04/13

9.670

$0.662

$0.434

$0.674

1.02

10/28/13

9.684

$0.663

$0.435

$0.666

1.00

Pasture & Rangeland

11/04/13

53.420

$0.193

$0.103

$0.134

.69

10/28/13

54.014

$0.195

$0.105

$0.122

.62

Peanuts

11/04/13

0.943

$0.046

$0.027

$0.002

.05

10/28/13

0.931

$0.046

$0.027

$0.002

.05

Rice

11/04/13

2.374

$0.056

$0.038

$0.085

1.51

10/28/13

2.376

$0.057

$0.038

$0.084

1.48

Sorghum

11/04/13

5.774

$0.277

$0.176

$0.149

.54

10/28/13

5.781

$0.277

$0.177

$0.141

.51

Soybeans

11/04/13

66.587

$2.459

$1.515

$0.401

.16

10/28/13

67.204

$2.483

$1.529

$0.381

.15

Burley Tobacco

11/04/13

0.065

$0.021

$0.012

$0.001

.06

10/28/13

0.064

$0.021

$0.012

$0.001

.06

Flue-Cured Tobacco

11/04/13

0.215

$0.046

$0.026

$0.030

.64

10/28/13

0.215

$0.046

$0.026

$0.024

.52

Wheat

11/04/13

48.163

$1.957

$1.233

$2.062

1.05

10/28/13

47.951

$1.950

$1.229

$2.017

1.03

TOTAL

11/04/13

292.383

$11.594

$7.163

$5.215

.45

10/28/13

294.385

$11.692

$7.223

$5.044

.43

Risk Protection (RP) policies remain the primary policy type that producers utilize, with 189 million net acres insured with an RP policy and payouts at $4.346 billion or roughly 83.3 percent of the payouts made thus far on 2013 crops.

As for where the losses have been paid, the most-recent map of indemnities is for the week ended Oct. 21 (when all indemnities were $4.604 billion) is shown below:

RMA 1map

That stands in sharp contrast to the 2012 loss map, which was last published in early August and reflects payouts of more than $17.4 billion:

RMA 2 2012 


Comments: While the indemnities continue to run ahead of the 2012 level at this point a year ago, expectations are that 2013 losses will not approach the record level of payouts that were seen in 2012. And, as the maps above indicate, the losses in the heart of the Corn Belt are far less so far for 2013 crops than was the case in 2012 when corn indemnities alone were more than $11 billion.


 

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


 


 

 

 

 

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