Crop Insurance Payouts Near $4 Billion for 2013 Crops

September 24, 2013 03:54 AM
 

via a special arrangement with Informa Economics, Inc.

Risk protection policies remain overwhelming choice for producers


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


U.S. crop insurance indemnities for 2013 crops are at $3.909 billion as of Sept. 23, still lagging the record payout level seen for 2012 crops of $17.410 billion, according to Risk Management Agency (RMA) data.

Wheat payouts already have reached $1.757 billion with levels for corn ($750 million), cotton ($564 million) and soybeans ($249 million) continuing to rise.

The level of net acres insured has reached 293.922 million for 2013, eclipsing the 2012 record of 283,008 million.


Crop – as of Sept. 23, 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

$11.826

2.73

2013

84.380

$4.683

$2.826

$0.750

.16

Cotton

2012

11.420

$0.836

$0.554

$1.094

1.31

2013

9.656

$0.663

$0.435

$0.584

.90

Pasture & Rangeland

2012

48.186

$0.164

$0.089

$0.182

1.11

2013

53.840

$0.194

$0.104

$0.114

.59

Peanuts

2012

1.323

$0.088

$0.052

$0.027

.31

2013

0.931

$0.046

$0.027

$0.001

.03

Rice

2012

2.099

$0.055

$0.038

$0.041

.75

2013

2.317

$0.052

$0.038

$0.049

.86

Sorghum

2012

4.682

$0.214

$0.138

$0.402

1.88

2013

5.768

$0.276

$0.176

$0.103

.37

Soybeans

2012

65.186

$2.351

$1.473

$2.129

.91

2013

66.905

$2.473

$1.523

$0.249

.10

Burley Tobacco

2012

0.082

$0.026

$0.015

$0.036

1.35

2013

0.063

$0.020

$0.012

$0.0008

.04

Flue-Cured Tobacco

2012

0.201

$0.039

$0.022

$0.041

1.05

2013

0.212

$0.046

$0.026

$0.002

.04

Wheat

2012

46.546

$1.789

$1.114

$0.759

.42

2013

48.308

$1.966

$1.238

$1.757

.89

TOTAL

2012

283.008

$11.111

$6.976

$17.410

1.57

2013

293.922

$11.700

$7.230

$3.909

.33


Risk protection (RP) policies remain the overwhelming choice of producers, with RP policies covering 62 percent of net acres insured for 2012 crops but 82.6 percent of the payouts. For 2013, RP policies have been taken out on nearly 65 percent of net acres insured and account for more than 84 percent of payouts so far on 2013 crops.


Comments: Except for indemnities, tallies for 2013 in terms or net acres insured, premiums paid and the premium subsidy levels have all set new record marks, with only indemnities and the loss ratio still at sub-record marks.


 

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


 


 

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