Crop Insurance Payouts Pass $9.1 Billion

January 22, 2014 08:17 AM
 

Indemnities for 2013 crops now total $9.147 billion as of Jan. 20 with the loss ratio at 0.78, according to Risk Management Agency (RMA) data.

Corn remains the largest payout on a by-crop basis, with indemnities at $3.780 billion followed by wheat at $2.225 billion. The next largest payouts among major US crops are soybeans at $907 million and cotton at $819 million.

2013 Crops

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

01/20/14

84.716

$4.682

$2.825

$3.780

.81

01/13/14

84.726

$4.682

$2.824

$3.448

.74

Cotton

01/20/14

9.781

$0.669

$0.439

$0.819

1.22

01/13/14

9.780

$0.669

$0.438

$0.791

1.18

Pasture & Rangeland

01/20/14

54.157

$0.195

$0.105

$0.148

.76

01/13/14

54.118

$0.195

$0.105

$0.142

.73

 

01/20/14

0.949

$0.046

$0.027

$0.019

.42

01/13/14

0.948

$0.046

$0.027

$0.018

.39

Rice

01/20/14

2.603

$0.061

$0.041

$0.113

1.84

01/13/14

2.604

$0.061

$0.041

$0.111

1.82

Sorghum

01/20/14

5.793

$0.277

$0.177

$0.327

1.18

01/13/14

5.790

$0.277

$0.177

$0.318

1.15

Soybeans

01/20/14

67.400

$2.490

$1.534

$0.907

.36

01/13/14

67.395

$2.490

$1.534

$0.850

.34

Burley Tobacco

01/20/14

0.065

$0.021

$0.012

$0.005

.26

01/13/14

0.065

$0.021

$0.012

$0.004

.20

Flue-Cured Tobacco

01/20/14

0.220

$0.047

$0.027

$0.073

1.54

01/13/14

0.220

$0.047

$0.027

$0.071

1.51

Wheat

01/20/14

48.523

$1.977

$1.246

$2.225

1.13

01/13/14

48.513

$1.975

$1.245

$2.217

1.12

TOTAL

01/13/14

296.003

$11.757

$7.265

$9.147

.78

01/13/14

295.996

$11.759

$7.266

$8.696

.74

 

While the loss ratio has edged higher to 0.78 for 2013 crops, the loss ratio has only been above 1.0 (total indemnities exceeding total premiums paid in) once since 2002 when 2012 reached 1.57 and the 2002 loss ratio was 1.39.

On a by-crop basis, corn has seen the loss ratio over 1.0 only once since 2007 when it reached 2.73 for 2012. Soybeans have only seen one year over the 2007-2012 period with a loss ratio of more than 1.0 and that was 2008 at 1.10. Ironically, the loss ratio for corn in 2008 was 0.81.

For cotton, the loss ratio has been above 1.0 all but two years over 2007-2012 and that in 2010 at 0.44 and 2007 at 0.51. The peak year over that period was 2008 when the loss ratio hit 1.42.

Comments: The 2012 indemnity total still stands as the high-water mark for the program when it totaled $17.426 billion and included $11.838 billion paid out to corn producers alone. At this point a year ago, 2012 losses were at $12.347 billion.

 

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