Crop Insurance Indemnities Rise Near $3 Billion for 2013 Crops

September 4, 2013 09:58 AM
 

Via a special arrangement with Informa Economics, Inc.


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


Increase in payouts sees wheat continue to build.

Indemnities for 2013 crops have reached $2.927 billion as of September 2, keeping that as the only area where the program is not yet beating the record year of 2012, according to Risk Management Agency (RMA) data.

While indemnities of nearly $3 billion are still dwarfed by the record level of $17.406 billion paid out for 2012 crops, other categories - net acres insured, premiums paid and premium subsidies - for 2013 have all topped marks set for 2012.

Wheat remains the largest payout in dollar terms so far at $1.440 billion, nearly double the level paid out for the crop in 2012. Cotton indemnities are nearly half as large for 2013 as they were in 2012, standing at $513 million.

Corn indemnities, which hit $11.825 billion for 2012, stand only at $434 million for 2013.

 

Crop as of Sept. 2, 2013

Year

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

2012

81.454

$4.329

$2.689

$11.825

2.73

2013

83.029

$4.623

$2.791

$0.434

.09

Cotton

2012

11.426

$0.836

$0.554

$1.094

1.31

2013

9.560

$0.659

$0.431

$0.513

.78

Pasture & Rangeland

2012

48.179

$0.164

$0.089

$0.182

1.11

2013

53.817

$0.194

$0.104

$0.105

.54

Peanuts

2012

1.323

$0.088

$0.052

$0.027

.30

2013

0.926

$0.045

$0.027

$0.001

.02

Rice

2012

2.100

$0.055

$0.038

$0.041

.75

2013

2.043

$0.052

$0.035

$0.035

.68

Sorghum

2012

4.681

$0.214

$0.138

$0.402

1.88

2013

5.707

$0.273

$0.175

$0.061

.22

Soybeans

2012

65.191

$2.351

$1.473

$2.129

.91

2013

65.526

$2.423

$1.493

$0.147

.06

Burley Tobacco

2012

0.082

$0.026

$0.015

$0.036

1.35

2013

0.060

$0.019

$0.011

$0.0004

.02

Flue-Cured Tobacco

2012

0.201

$0.039

$0.022

$0.041

1.05

2013

0.206

$0.044

$0.025

$0.0005

.01

Wheat

2012

46.546

$1.789

$1.114

$0.759

.42

2013

47.710

$1.944

$1.225

$1.440

.74

TOTAL

2012

283.004

$11.111

$6.976

$17.407

1.57

2013

285.412

$11.522

$7.121

$2.927

.25


 

 

Comments: The loss ratio for the program stands at just .25 so far after having hit 1.57 in 2012. That loss ratio for 2012 is the first time since the 2002 crop year that the ratio has been above 1.0 and marks the largest loss ratio since 2.19 registered in 1993.

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