Crop Insurance Payouts Clear $4.2 Billion for 2013 Crops

October 2, 2013 07:35 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.


Pace is ahead of year-ago when indemnities eventually hit record.

Indemnities for 2013 crops have risen to $4.226 billion as of Sept. 30, according to Risk Management Agency (RMA) data.

The payouts so far area heavily driven by claims filed on wheat losses as the commodity remains the only one with indemnities of more than $1 billion at $1.841 billion. Corn payouts so far are at $869 million while cotton indemnities stand at $611 million.

The pace of payouts this year continues to run ahead of where 2012 crop indemnities stood at this point last year when they were at $1.989 billion on their way to the record of $17.411 billion.

Crop – as of Sept. 30, 2013

Year

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

2012

81.456

$4.330

$2.689

$11.827

2.73

2013

84.555

$4.686

$2.827

$0.869

.19

Cotton

2012

11.427

$0.836

$0.554

$1.094

1.31

2013

9.636

$0.662

$0.434

$0.611

.92

Pasture & Rangeland

2012

48.012

$0.164

$0.089

$0.182

1.11

2013

53.812

$0.194

$0.104

$0.118

.61

Peanuts

2012

1.320

$0.086

$0.051

$0.026

.31

2013

0.939

$0.046

$0.027

$0.002

.04

Rice

2012

2.100

$0.055

$0.038

$0.041

.75

2013

2.356

$0.0582

$0.039

$0.055

.94

Sorghum

2012

4.683

$0.214

$0.138

$0.402

1.88

2013

5.773

$0.277

$0.176

$0.112

.41

Soybeans

2012

65.197

$2.351

$1.473

$2.129

.91

2013

67.092

$2.480

$1.525

$0.285

.11

Burley Tobacco

2012

0.082

$0.027

$0.015

$0.036

1.35

2013

0.064

$0.021

$0.012

$0.0009

.04

Flue-Cured Tobacco

2012

0.201

$0.039

$0.022

$0.041

1.05

2013

0.215

$0.046

$0.026

$0.003

.07

Wheat

2012

46.547

$1.789

$1.114

$0.759

.42

2013

48.301

$1.964

$1.238

$1.841

.94

TOTAL

2012

282.853

$11.110

$6.975

$17.412

1.57

2013

294.319

$11.710

$7.235

$4.226

.36

 

Comments: The pace of indemnities on 2013 is expected to continue to grow, especially with growers now getting into corn and soybean fields, particularly in areas where drought conditions have unfolded after a late start to the growing season. Already, the net acres insured, premiums paid and the level of subsidy paid are already at record marks.

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