Crop Insurance Payouts for 2012 Crops Just $150 Mil. Shy of New Record

January 8, 2013 01:59 AM
 

 via a special arrangement with Informa Economics, Inc.

Indemnities rise to $10.69 billion for the week ended Jan. 7, 2013


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



U.S. crop insurance indemnities reached $10.694 billion for 2012 crops, just shy of the $10.844 billion record set for 2011 crops, according to Risk Management Agency data as of Jan. 7.

Payouts for corn rose to $6.6 billion while soybeans reached $1.38 billion, and other major commodities remain under the $1 billion mark.

And revenue-based policies remain the crop insurance tool of choice and thus are also the biggest source of payments to producers for 2012 crops. On corn, over 90 percent of the payouts for 2012 have been on revenue-based policies with a similar percentage on soybeans.

Crop

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

01/07/13

81.109

$4.311

$2.677

$6.639

1.54

12/31/12

81.072

$4.308

$2.674

$6.149

1.43

Cotton

01/07/13

11.374

$0.831

$0.551

$0.819

.98

12/31/12

11.379

$0.832

$0.551

$0.789

.95

Pasture & Rangeland

01/07/13

48.149

$0.163

$0.088

$0.102

.62

12/31/12

48.125

$0.163

$0.088

$0.101

.62

Peanuts

01/07/13

1.302

$0.086

$0.051

$0.014

.16

12/31/12

1.302

$0.086

$0.051

$0.013

.15

Rice

01/07/13

2.102

$0.055

$0.039

$0.038

.69

12/31/12

2.102

$0.055

$0.039

$0.038

.68

Soybeans

01/07/13

64.930

$2.340

$1.466

$1.385

.59

12/31/12

64.711

$2.331

$1.460

$1.280

.55

Wheat

01/07/13

46.324

$1.780

$1.109

$0.714

.40

12/31/12

46.324

$1.780

$1.109

$0.712

.40

TOTAL

01/07/13

281.797

$11.052

$6.938

$10.694

.97

12/31/12

281.479

$11.037

$6.928

$10.026

.91


Comments: The payout record should be broken next week and will continue to rise. This is about the same point in the year that the 2011 payouts reached a record mark, besting the prior record of $8.6 billion that was paid out for 2008 crops. At this point a year ago, 2011 payouts were at $8.56 billion.


 

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


 


 

 

 

 

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