Crop Insurance Indemnities Reach $15.4 Billion for 2012 Crops

March 4, 2013 02:48 AM
 
Untitled Document

via a special arrangement with Informa Economics, Inc.

Corn payouts pass $10 billion, with another nearly $2 billion for soybeans

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


U.S. crop insurance indemnities for 2012 crops hit $15.435 billion as of March 4, pushing the loss ratio for the program to 1.39 and continuing to set a new record for the program, according to Risk Management Agency (RMA) data.

Payouts for corn now exceed $10.2 billion, just $600 million below the total payouts for the program on 2011 crops. The loss ratio for corn also rose, now at 2.36.

Soybean payouts are closing in on $2 billion for 2012 crops, reaching $1.976 billion but the loss ratio only rose to .84. The only other major area that has a loss ratio over 1.0 is pasture and rangeland, where the payouts of $177 million pushed the loss ratio to 1.09.

The following table compares the data as of March 4 with data as of Feb. 18 as the data for the week ended Feb. 25 showed a “significant drop in the premiums and indemnities due to a processing issue,” according to RMA. The issue appears to have been rectified based on the updated data released today:

Crop

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

03/04/13

81.264

$4.319

$2.681

$10.212

2.36

02/18/13

81.214

$4.315

$2.679

$9.652

2.24

Cotton

03/04/13

11.402

$0.835

$0.553

$1.062

1.27

02/18/13

11.406

$0.835

$0.553

$1.040

1.25

Pasture & Rangeland

03/04/13

48.108

$0.163

$0.088

$0.177

1.09

02/18/13

48.092

$0.163

$0.088

$0.128

.78

Peanuts

03/04/13

1.310

$0.086

$0.051

$0.024

.28

02/18/13

1.305

$0.086

$0.051

$0.022

.26

Rice

03/04/13

2.104

$0.055

$0.038

$0.040

.72

02/18/13

2.106

$0.055

$0.039

$0.039

.71

Soybeans

03/04/13

65.003

$2.344

$1.468

$1.976

.84

02/18/13

64.925

$2.341

$1.466

$1.908

.82

Wheat

03/04/13

46.362

$1.782

$1.110

$0.729

.41

02/18/13

46.370

$1.782

$1.110

$0.728

.41

TOTAL

03/04/13

282.112

$11.073

$6.951

$15.435

1.39

02/18/13

282.018

$11.068

$6.948

$14.704

1.33


Comments: Corn accounts for two-thirds of all indemnities for 2012 crops so far, with the combination of corn and soybeans has accounted for nearly 80 percent of the payouts and when combined with cotton, the three crops equate to 86 percent of the payouts. For 2013, already there are 87.875 million net acres insured, ahead of the level of 81.071 million for 2012 crops at this point a year ago. The net acres insured for 2012 -- 282.112 million -- are a record level. 



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


 


 

 

 

 

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close