Crop Insurance Payouts on 2011 Crops Pass $10.3 Billion

March 23, 2012 03:34 AM

Crop insurance payouts on 2011 crops continue to edge higher, reaching $10.34 billion for the week ended March 19. That pushes the loss ratio for 2011 crops under the program to .87 and puts the total payouts closer and closer to the $11 billion mark that some at USDA's Risk Management Agency (RMA) were forecasting earlier this year.

So far, more than half of the payouts have gone for corn and cotton, while indemnities for soybeans and wheat are each at $1.4 billion or more.

To underscore what rice producers are signaling relative to the crop insurance program, payouts for that crop are just $84.6 million, just over 3 percent of the level paid out for another southern crop - cotton.

By state, three states have collected around half of the indemnities - Texas, North Dakota and Kansas. The top 10 states in terms of indemnities under the program account for more than three-quarters of the dollars paid out so far -- $7.9 billion.

Here's a look at key crops for 2011 crop insurance indemnities:

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For 2011 crops, producers insured a net 264.599 million acres and have coverage on a net 82.511 million acres for 2012 crops. And that doesn't reflect the biggest chunk of insurance coverage that is expected for spring-planted crops that had a purchase date of March 15.

For 2011 crop corn, producers bought 515,455 policies of which 373,757 were RP - Risk Protection - policies. For 2012 crop corn, RMA data indicates 514,081 policies have been sold with 380,930 RP policies.

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