Crop Insurance Payouts for 2012 Crops Nearing $16 Billion

March 11, 2013 10:36 PM
 
Untitled Document

via a special arrangement with Informa Economics, Inc.

Two-thirds of 2012 indemnities have been made on corn


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


Indemnities under the federal crop insurance program totaled $15.750 billion as of March 11, with corn accounting for two-thirds of the payouts, according to Risk Management Agency (RMA) data.

Payouts rose 2 percent as of March 11, with the loss ratio on the program rising to 1.42.

By commodity, corn remains the dominant source of payouts, with $10.463 billion. Only soybeans at $2.005 billion and cotton at $1.071 billion have seen indemnities pass the $1 billion mark for 2012 crops.

On corn, payouts in Illinois have reached $2.585 billion or about one quarter of total indemnities for corn.  Only Iowa at $1.666 billion and Nebraska at $1.156 billion have seen payouts more than $1 billion for corn. The corn payouts in Illinois account for 91 percent of indemnities for the state, with that percentage at 87 percent in Iowa and 77 percent in Nebraska.

Texas cotton payouts have reached $991 million, accounting for nearly 93 percent of all cotton indemnities issued so far.

Crop

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

03/11/13

81.264

$4.319

$2.682

$10.463

2.42

03/04/13

81.264

$4.319

$2.681

$10.212

2.36

Cotton

03/11/13

11.406

$0.835

$0.553

$1.071

1.28

03/04/13

11.402

$0.835

$0.553

$1.062

1.27

Pasture & Rangeland

03/11/13

48.108

$0.163

$0.088

$0.179

1.10

03/04/13

48.108

$0.163

$0.088

$0.177

1.09

Peanuts

03/11/13

1.313

$0.087

$0.051

$0.024

.28

03/04/13

1.310

$0.086

$0.051

$0.024

.28

Rice

03/11/13

2.105

$0.055

$0.039

$0.040

.72

03/04/13

2.104

$0.055

$0.038

$0.040

.72

Soybeans

03/11/13

65.029

$2.344

$1.469

$2.005

.86

03/04/13

65.003

$2.344

$1.468

$1.976

.84

Wheat

03/11/13

46.368

$1.782

$1.110

$0.731

.41

03/04/13

46.362

$1.782

$1.110

$0.729

.41

TOTAL

03/11/13

282.167

$11.076

$6.953

$15.750

1.42

03/04/13

282.112

$11.073

$6.951

$15.435

1.39


Comments: Illinois remains the state with the largest indemnities, totaling $2.836 billion for all crops. Iowa is at $1.925 billion, with Nebraska at $1.503 billion, Texas at $1.394 billion, Kansas at $1.358 billion, Missouri at $1.117 billion and Indiana at $1.060 billion.  



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


 

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