Crop Insurance Indemnities Pass $11.5 Billion for 2013 Crops

April 2, 2014 10:00 AM
 

via a special arrangement with Informa Economics, Inc.

Farm bill also prompts an extension by RMA relative to crop insurance companies for 2015 coverages


Crop insurance indemnities reached $11.547 billion as of March 31, up slightly from the prior week but still behind the 2012-crop record of $17.431 billion, according to Risk Management Agency (RMA) data.

Corn indemnities remain the biggest portion of the payouts for 2013 crops, with the $5.476 billion amounting to nearly 48 percent of the indemnities to date. Wheat indemnities of $2.248 billion amount to nearly 20 percent of the payouts while the $1.182 billion for soybeans is about 10 percent of the indemnities to date on 2013 crops.

2013 Crops

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

03/31/14

84.769

$4.685

$2.826

$5.476

1.17

03/24/14

84.747

$4.685

$2.826

$5.449

1.16

Cotton

03/31/14

9.860

$0.676

$0.443

$0.968

1.43

03/24/14

9.722

$0.666

$0.437

$0.951

1.43

Pasture & Rangeland

03/31/14

54.243

$0.196

$0.105

$0.177

.90

03/24/14

54.241

$0.196

$0.105

$0.176

.90

Peanuts

03/31/14

0.952

$0.046

$0.027

$0.024

.52

03/24/14

0.950

$0.046

$0.027

$0.024

.52

Rice

03/31/14

2.301

$0.062

$0.042

$0.118

1.89

03/24/14

2.299

$0.062

$0.042

$0.117

1.88

Sorghum

03/31/14

5.791

$0.277

$0.177

$0.360

1.30

03/24/14

5.758

$0.276

$0.176

$0.359

1.30

Soybeans

03/31/14

67.466

$2.493

$1.535

$1.182

.47

03/24/14

67.463

$2.493

$1.535

$1.178

.47

Burley Tobacco

03/31/14

0.064

$0.021

$0.012

$0.031

1.50

03/24/14

0.064

$0.021

$0.012

$0.028

1.34

Flue-Cured Tobacco

03/31/14

0.220

$0.047

$0.027

$0.079

1.66

03/24/14

0.220

$0.047

$0.027

$0.079

1.66

Wheat

03/31/14

48.580

$1.981

$1.249

$2.258

1.14

03/24/14

48.414

$1.973

$1.243

$2.243

1.14

TOTAL

03/24/14

295.748

$11.784

$7.282

$11.547

.98

03/24/14

295.372

$11.762

$7.268

$11.473

.98

Here’s a look at 2013-crop indemnities as of March 24:

 RMA

As 2014 crop sales continue, RMA reports that 87.482 million net acres are insured, just behind the 90.212 million net acres insured for 2013 crops at this point a year ago.

And there are new developments relative to 2015 crops in part due to the new farm bill. Approved Insurance Providers (AIPs) normally have until April 1 to submit their Plan of Operations to RMA under the Standard Reinsurance Agreement (SRA), but RMA said that while they expected the Plan submissions by April 1, the agency "will consider revisions submitted by May 19, 2014. The extension is to provide additional time for the Approved Insurance Providers to consider the Farm Bill impact in their 2015 Plan documentation submission."


Comments: There were a host of changes that will take effect for the 2015 crop year so it is not too surprising that RMA is allowing AIPs more time to submit their plans to the agency.  Some of the changes include the Supplemental Coverage Option (SCO) and the Stacked Income Protection Program (STAX) for cotton along with other shifts.


 

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


 


 

 

 

 

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