Crop Insurance Indemnities Reach $11.8 Billion for 2013 Crops

April 22, 2014 09:24 AM
 

via a special arrangement with Informa Economics, Inc.

Loss ratio also moves to 1.0 for second consecutive crop year


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


Indemnities paid on 2013 crop losses reached $11.822 billion as of April 21, up nearly $350 million compared to the week ended March 24, according to Risk Management Agency (RMA) data.

The rise in payouts for 2013 crops remains the second highest payouts on record for the program, second to the 2012 record of $17.433 billion.

The increase in indemnities also pushed the program past another milestone – the loss ratio (total payouts compared to total premiums paid in) is now at 1.00 – meaning that losses paid out on 2013 crop losses are equal to the total premiums paid in.

2013 Crops

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

04/21/14

84.733

$4.681

$2.825

$5.705

1.22

03/24/14

84.747

$4.685

$2.826

$5.449

1.16

Cotton

04/21/14

9.876

$0.677

$0.444

$0.974

1.44

03/24/14

9.722

$0.666

$0.437

$0.951

1.43

Pasture & Rangeland

04/21/14

54.242

$0.196

$0.105

$0.177

.90

03/24/14

54.241

$0.196

$0.105

$0.176

.90

Peanuts

04/21/14

0.952

$0.046

$0.027

$0.024

.53

03/24/14

0.950

$0.046

$0.027

$0.024

.52

Rice

04/21/14

2.301

$0.062

$0.042

$0.118

1.89

03/24/14

2.299

$0.062

$0.042

$0.117

1.88

Sorghum

04/21/14

5.797

$0.277

$0.177

$0.362

1.31

03/24/14

5.758

$0.276

$0.176

$0.359

1.30

Soybeans

04/21/14

67.451

$2.492

$1.535

$1.196

.48

03/24/14

67.463

$2.493

$1.535

$1.178

.47

Burley Tobacco

04/21/14

0.063

$0.021

$0.012

$0.032

1.57

03/24/14

0.064

$0.021

$0.012

$0.028

1.34

Flue-Cured Tobacco

04/21/14

0.220

$0.047

$0.027

$0.079

1.66

03/24/14

0.220

$0.047

$0.027

$0.079

1.66

Wheat

04/21/14

48.588

$1.982

$1.249

$2.268

1.14

03/24/14

48.414

$1.973

$1.243

$2.243

1.14

TOTAL

04/21/14

295.719

$11.779

$7.280

$11.822

1.00

03/24/14

295.372

$11.762

$7.268

$11.473

.98

 

As for 2014 crops, so far there are 88.762 million net acres insured, ahead of the 2013 pace at this point a year ago. Total net acres insured for 2013 crops stands at 295.720 million, a record for the program.

Comments: This now marks the second consecutive crop year that the loss ratio has been at 1.0 or greater as the 2013 loss ratio is at 1.57. Prior to the 2012 crop year, the loss ratio was at 1.0 or greater in 2002. While the loss ratio is at 1.0 for two consecutive years (2012 and 2013), the loss ratio was at 1.0 or greater each year over the 1999 through 2002 crop years.


 

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


 


 

 

 

 

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