Crop Insurance Payouts for 2013 Close in on $10 Billion

February 6, 2014 06:13 AM
 

Soybeans clear $1 billion indemnity mark.

 

 


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Crop insurance indemnities for 2013 crop losses rose to just shy of $10 billion at $9.995 billion for the week ended Feb. 3, according to Risk Management Agency (RMA) data.

Corn continues to lead all payouts on a by-crop basis at $4.378 billion with wheat next at 2.236 billion. Soybean payouts also moved over the $1 billion mark with indemnities of $1.004 billion as of Feb. 3. Cotton remains below the $1 billion threshold at $879 million.

 

2013 Crops

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

02/03/14

84.713

$4.681

$2.824

$4.378

.94

01/27/14

84.687

$4.680

$2.823

$4.083

.87

Cotton

02/03/14

9.821

$0.673

$0.441

$0.879

1.31

01/27/14

9.820

$0.673

$0.441

$0.851

1.27

Pasture & Rangeland

02/03/14

54.179

$0.195

$0.105

$0.154

.79

01/27/14

54.171

$0.195

$0.105

$0.151

.77

Peanuts

02/03/14

0.948

$0.046

$0.027

$0.021

.46

01/27/14

0.948

$0.046

$0.027

$0.020

.44

Rice

02/03/14

2.614

$0.062

$0.042

$0.113

1.84

01/27/14

2.599

$0.061

$0.041

$0.113

1.85

Sorghum

02/03/14

5.789

$0.277

$0.177

$0.341

1.23

01/27/14

5.783

$0.277

$0.177

$0.336

1.21

Soybeans

02/03/14

67.417

$2.490

$1.534

$1.004

.40

01/27/14

67.385

$2.489

$1.533

$0.954

.38

Burley Tobacco

02/03/14

0.065

$0.021

$0.012

$0.010

.45

01/27/14

0.065

$0.021

$0.012

$0.007

.34

Flue-Cured Tobacco

02/03/14

0.220

$0.047

$0.027

$0.075

1.59

01/27/14

0.220

$0.047

$0.027

$0.075

1.57

Wheat

02/03/14

48.542

$1.978

$1.247

$2.236

1.13

01/27/14

48.496

$1.976

$1.245

$2.227

1.13

TOTAL

02/03/14

296.166

$11.766

$7.271

$9.995

.85

01/27/14

295.953

$11.756

$7.264

$9.564

.81

 

So how often have corn, soybean and wheat payouts moved above $1 billion? Here’s a look at indemnities paid out over the 2008-2012 crop year period for those three crops:

 

Crop

.

2012

2011

2010

2009

2008

In billion dollars

Corn

$11.834

$3.230

$1.723

$1.179

$3.063

Soybeans

$2.218

$1.568

$0.741

$0.555

$2.874

Wheat

$0.760

$1.771

$0.561

$1.966

$1.147

Total of above crops

$14.812

$6.569

$3.025

$3.700

$7.057

Total, all crops

$17.426

$10.867

$4.251

$5.222

$8.680

 

Comments: Payouts under the crop insurance program reached record levels in 2008, 2011 and 2012 but are unlikely to repeat that in 2013. If payouts for 2013 rise by the same percentage seen last year from this point to the current final figure, that would put 2013 payouts around $12 billion which would still have them at the second highest point for the program.

 

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