Crop Insurance Indemnities Near $6.1 Billion

November 27, 2013 03:02 AM
 

via a special arrangement with Informa Economics, Inc.

Wheat payouts continue to lead all crops so far at over $2 billion


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


U.S. crop insurance indemnities stand at $6.093 billion as of Nov. 25 but still lag the record level registered for 2012 crops of $17.427 billion, according to Risk Management Agency (RMA) data.

The rise in indemnities moved the loss ratio for 2013 crops to .52, also well behind the 1.57 mark set for the 2012 payouts.

Wheat indemnities remain the largest share of those paid out thus far in 2013 production, with $2.136 billion, while payouts for corn increased to $1.695 billion and indemnities on cotton are at $706 million.


2013 Crops

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

11/25/13

84.573

$4.673

$2.819

$1.695

.36

11/18/13

84.376

$4.662

$2.812

$1.503

.32

Cotton

11/25/13

9.736

$0.667

$0.437

$0.706

1.06

11/18/13

9.686

$0.663

$0.435

$0.692

1.04

Pasture & Rangeland

11/25/13

54.015

$0.195

$0.105

$0.131

.67

11/18/13

54.003

$0.195

$0.105

$0.135

.69

Peanuts

11/25/13

0.945

$0.046

$0.027

$0.006

.13

11/18/13

0.943

$0.046

$0.027

$0.004

.09

Rice

11/25/13

2.562

$0.061

$0.041

$0.102

1.68

11/18/13

2.558

$0.061

$0.041

$0.099

1.63

Sorghum

11/25/13

5.772

$0.276

$0.176

$0.196

.71

11/18/13

5.784

$0.277

$0.177

$0.183

.66

Soybeans

11/25/13

67.212

$2.483

$1.529

$0.514

.21

11/18/13

67.056

$2.477

$1.526

$0.469

.19

Burley Tobacco

11/25/13

0.065

$0.021

$0.012

$0.002

.08

11/18/13

0.065

$0.021

$0.012

$0.002

.09

Flue-Cured Tobacco

11/25/13

0.215

$0.046

$0.026

$0.047

1.02

11/18/13

0.214

$0.046

$0.026

$0.040

.86

Wheat

11/25/13

48.369

$1.967

$1.240

$2.136

1.09

11/18/13

48.332

$1.965

$1.238

$2.119

1.08

TOTAL

11/25/13

295.191

$11.723

$7.244

$6.093

.52

11/18/13

294.720

$11.700

$7.230

$5.779

.49


The level of premiums paid in at $11.723 billion eclipses the 2012-crop mark of $11.113 billion but remains shy of the $11.968 billion in premiums for the 2011 crop season. Indemnities in 2011 reached $10.886 billion – a record until the 2012 payout level.

The level of net acres insured for 2013 stands at 295.191 million, well ahead of the level seen for 2012 of 283.081 million.


Comments: The level of indemnities so far in 2013 remains behind the pace seen in 2012 at this point of the year -- $6.093 billion for 2013 versus $6.270 billion for 2012 – though the gap has been narrowing as the indemnities continue to be registered in the system.


 

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


 


 

 

 

 

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