Crop Insurance Payouts Pass $17.1 Billion for 2012 Crops

April 30, 2013 04:01 AM
 

via a special arrangement with Informa Economics, Inc.

Corn payouts now nearly $1 billion beyond total indemnities for 2011 crops


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


U.S. crop insurance indemnities for 2012 crops hit $17.169 billion as of April 29, pushing the loss ratio for the program to 1.55, according to Risk Management Agency (RMA) data.

Corn remains the major crop for payouts at $11.676 billion, accounting for 68 percent of total indemnities and nearly $1 billion above the total payouts for 2011 crops of $10.862 billion.

Payouts for corn and soybeans were most of the increase noted over the past week:


 

Crop

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

04/29/13

81.338

$4.322

$2.684

$11.676

2.70

04/22/13

81.343

$4.323

$2.684

$11.518

2.66

Cotton

04/29/13

11.412

$0.835

$0.552

$1.080

1.29

04/22/13

11.412

$0.836

$0.553

$1.080

1.29

Pasture & Rangeland

04/29/13

48.092

$0.164

$0.089

$0.181

1.11

04/22/13

48.094

$0.164

$0.089

$0.181

1.10

Peanuts

04/29/13

1.316

$0.087

$0.052

$0.025

.28

04/22/13

1.315

$0.087

$0.052

$0.025

.28

Rice

04/29/13

2.105

$0.055

$0.039

$0.041

.74

04/22/13

2.106

$0.055

$0.039

$0.041

.74

Sorghum

04/29/13

4.678

$0.214

$0.138

$0.402

1.88

04/22/13

4.678

$0.214

$0.138

$0.401

1.88

Soybeans

04/29/13

65.087

$2.347

$1.470

$2.115

.90

04/22/13

65.084

$2.347

$1.470

$2.102

.90

Wheat

04/29/13

46.419

$1.784

$1.111

$0.755

.42

04/22/13

46.405

$1.784

$1.111

$0.753

.42

TOTAL

04/29/13

282.402

$11.088

$6.960

$17.169

1.55

04/22/13

282.386

$11.088

$6.960

$16.992

1.53


Here are how the payouts for corn have gone by key states compared to the total payouts in those states:

CORN AND TOTAL INDEMNITIES

 

State

Corn
(million dollars)

Total
(million dollars)

Corn as % of Total

Illinois

$3,141.4

$3,435.1

91%

Indiana

$1,238.5

$1,442.0

86%

Iowa

$1,734.6

$2,001.4

87%

Kansas

$729.1

$1,367.9

53%

Missouri

$844.7

$1,145.7

74%

Nebraska

$1,189.0

$1,542.4

77%

South Dakota

$779.0

$1,109.6

70%

TOTAL

$11,676.4

$17,168.9

68%

       

The loss ratio for the program as a whole at 1.55 is the first time since 2002 that the loss ratio has been over 1.0 – it was at 1.39 for 2002 crops. But the total net acreage insured in the program for 2012 crops at 282.402 million is well above the level seen for 2002 crops of 214.865 million.

Already for 2013 crops, there are 87.146 million net acres insured, ahead of the 84.869 million for 2012 crops that were insured at this point last year.

Comments: The pace of the increase has clearly slowed now that the Group Risk Income Protection (GRIP) payouts have flowed into the system and should not grow a considerable amount more from here if history is any guide. For 2011 crops at this point last year, indemnities rose just $127 million to the current total of $10.861 billion.


 

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


 


 

 

 

 

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