Crop Insurance Indemnities Hit $9.6 Billion for 2012 Crops

December 28, 2012 04:06 AM

Via a special arrangement with Informa Economics, Inc.

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Corn payouts near $6 billion with more than $1 billion for Illinois alone.

Indemnities under the federal crop insurance program total $9.655 billion as of Dec. 24, pushing the loss ratio for the program overall to .87, nearing the level seen on the record payouts for 2011 crops, according to Risk Management Agency (RMA) data.

Corn continues to lead the indemnity totals, with $5.87 billion paid out, with Illinois the only state so far that has seen more than $1 billion in payouts at $1.014 billion. However, Iowa stands at $939 million with another $705 million in Nebraska and $620 million in South Dakota. Kansas rounds out the top five states at $574 million.

As for soybeans, the total of $1.236 billion includes $216 million in South Dakota, $190 million for Nebraska, $158 million in Kansas, $153 million in Iowa and Missouri at $139 million. In Illinois, soybean indemnities are still under $100 million ($91 million).

Texas accounts for a major portion of indemnities for several other crops, with $670 million of the cotton total of $760 million and $32 million of the total $37 million for rice. Texas has the top spot for wheat at $163 million of the $712 million in total payouts where Kansas also has $161million in indemnities. For sorghum, Kansas accounts for $180 million of the total $314 million in indemnities.

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PERSPECTIVE: At this point a year-ago, indemnities totaled $7.9 billion on their way to a record of $10.839 billion. That pushed the loss ratio for 2011 crops to.91 while payouts have already shoved the loss ratio to .87. Total premiums under the program were $11.959 billion against $11.044 billion for 2012 crops. That also means the subsidy level is slightly lower but will not keep the program from being a focus for lawmakers and other groups who want to reduce US farm program spending.

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