Indemnities on 2013 Crops Already Over $1 Billion

July 24, 2013 03:22 AM
 

via a special arrangement with Informa Economics, Inc.

2012 indemnities actually fall slightly as figures are reconciled


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


Indemnities on 2013 losses already have reached $1.173 billion as of July 22 under the federal crop insurance program, more than double the pace seen at this point last year as 2012 payouts worked their way to a new record, according to Risk Management Agency (RMA) data.

Data shows that there are 178.761 million net acres insured, behind the year-ago pace of 206.113 million and the total acreage thus far for 2012 of 282.766 million net acres insured. And payouts at this point a year ago were at $547.147 million, more than half the level already registered for 2013 payouts.

Here’s a look at the payouts so far for major crops under the program for 2013 losses:


Crop

Amount
(million dollars)

Corn

$44.6

Cotton

$182.3

Grain Sorghum

$14.3

Pasture and Rangeland

$68.8

Rice

$22.4

Soybeans

$13.2

Wheat

$753.7

TOTAL

$1,173.9


As for 2012-crop data, there is actually a decline in indemnities, a typical development as policies, claims and other data are reconciled in the RMA system. Payouts are now put at $17.371 billion as of July 22, down slightly from $17.384 billion reported for the week ended July 15.

The decrease in payouts also lowered the loss ratio to 1.56, leaving it still as the first year since 2002 that the program has seen a loss ratio of 1.0 or greater.


 

Crop

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

07/22/13

81.389

$4.326

$2.686

$11.805

2.73

07/15/13

81.439

$4.329

$2.688

$11.813

2.73

Cotton

07/22/13

11.418

$0.836

$0.554

$1.092

1.31

07/15/13

11.419

$0.836

$0.554

$1.094

1.31

Pasture & Rangeland

07/22/13

48.147

$0.164

$0.089

$0.180

1.10

07/15/13

48.147

$0.164

$0.089

$0.180

1.10

Peanuts

07/22/13

1.319

$0.088

$0.052

$0.026

.30

07/15/13

1.319

$0.088

$0.052

$0.026

.30

Rice

07/22/13

2.100

$0.055

$0.038

$0.041

.75

07/15/13

2.100

$0.055

$0.038

$0.041

.75

Sorghum

07/22/13

4.679

$0.214

$0.138

$0.402

1.88

07/15/13

4.679

$0.214

$0.138

$0.402

1.88

Soybeans

07/22/13

65.125

$2.348

$1.471

$2.125

.91

07/15/13

65.172

$2.350

$1.473

$2.128

.91

Burley Tobacco

07/22/13

0.082

$0.026

$0.015

$0.036

1.35

07/15/13

0.082

$0.026

$0.015

$0.036

1.35

Flue-Cured Tobacco

07/22/13

0.201

$0.039

$0.022

$0.041

1.05

07/15/13

0.201

$0.039

$0.022

$0.041

1.05

Wheat

07/22/13

46.519

$1.788

$1.114

$0.758

.42

07/15/13

46.516

$1.788

$1.114

$0.758

.42

TOTAL

07/22/13

282.766

$11.102

$6.969

$17.371

1.56

07/15/13

282.853

$11.106

$6.972

$17.384

1.57


Comments: The rise in 2013 payouts will be interesting to watch as more claims come in and more policies are recorded in the RMA system given expectations for the maladies this spring that prompted some areas of the country to see higher-than-usual levels of prevented planting claims and other impacts from the wet spring which delayed or thwarted plantings in some areas.

The decline in 2012 payouts is not a major development as that has happened in prior years as RMA data is updated to reflect what may have been misreported or disallowed indemnities on some crops.


 

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


 


 

 

 

 

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