Crop Insurance Indemnities Reach $4.6 Bil. for 2013 Crops

October 23, 2013 08:33 AM
 

Loss ratios for wheat and rice now at 1.0 or higher


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


US crop insurance indemnities have reached $4.604 billion for 2013 crops as of Oct. 21, 2013, up from just over $4.2 billion when the data was last published at the end of September, according to Risk Management Agency (RMA) data.

Of major US crops, only corn and wheat have seen indemnities of $1 billion or more, with wheat closing in on $2 billion.

As of Oct. 21, the loss ratio for wheat also reached 1.0 – the level of indemnities ($1.946 billion) matches the level of total premiums paid in ($1.947 billion). The only other commodity with a loss ratio of 1 or greater is rice at 1.27.

Here’s a look at 2013 indemnities as of Oct. 21 compared to the last published data which was as of Sept. 30:

2013 Crops

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

10/21/13

84.037

$4.647

$2.800

$1.019

.22

09/30/13

84.555

$4.686

$2.827

$0.869

.19

Cotton

10/21/13

9.644

$0.661

$0.433

$0.564

.85

09/30/13

9.636

$0.662

$0.434

$0.611

.92

Pasture & Rangeland

10/21/13

53.954

$0.194

$0.104

$0.120

.62

09/30/13

53.812

$0.194

$0.104

$0.118

.61

Peanuts

10/21/13

0.939

$0.046

$0.027

$0.002

.04

09/30/13

0.939

$0.046

$0.027

$0.002

.04

Rice

10/21/13

2.304

$0.056

$0.038

$0.071

1.27

09/30/13

2.356

$0.0582

$0.039

$0.055

.94

Sorghum

10/21/13

5.766

$0.276

$0.176

$0.123

.45

09/30/13

5.773

$0.277

$0.176

$0.112

.41

Soybeans

10/21/13

66.688

$2.463

$1.515

$0.338

.14

09/30/13

67.092

$2.480

$1.525

$0.285

.11

Burley Tobacco

10/21/13

0.064

$0.020

$0.012

$0.001

.05

09/30/13

0.064

$0.021

$0.012

$0.0009

.04

Flue-Cured Tobacco

10/21/13

0.214

$0.046

$0.026

$0.012

.26

09/30/13

0.215

$0.046

$0.026

$0.003

.07

Wheat

10/21/13

47.916

$1.947

$1.226

$1.946

1.00

09/30/13

48.301

$1.964

$1.238

$1.841

.94

TOTAL

10/21/13

292.997

$11.628

$7.180

$4.604

.40

09/30/13

294.319

$11.710

$7.235

$4.226

.36

 

Data for 2012 crops remained largely unchanged – total indemnities are at $17.413 billion with a loss ratio of 1.57 for the week ended Oct. 21 while they stood at $17.412 billion with a loss ratio of 1.57 as of Sept. 30.

Comments: The relatively small increase in payouts still has 2013 running ahead of where 2012 stood at this point a year ago when indemnities had reached $3.017 billion on their way to the record mark of $17.413 billion. And there are around 10 million more net insured acres in 2013 compared to 2012 – 292.996 million in 2013 compared to 282.825 million for 2012.

 

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