Payouts for 2012 Crop Insurance Rise Slightly

July 17, 2013 11:25 PM
 

via a special arrangement with Informa Economics, Inc.

2013 activity continues to rise with more than 150 million net acres insured; indemnities already close to $1 billion


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


Crop insurance indemnities on 2012 crops moved up slightly to $17.384 billion with the loss ratio remaining at 1.57, according to Risk Management Agency (RMA) data.

Indemnities for corn and cotton each increased by $1 million, marking the biggest increases for 2012 crops the week ended July 15.

Crop

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

07/15/13

81.439

$4.329

$2.688

$11.813

2.73

07/08/13

81.439

$4.329

$2.688

$11.812

2.73

Cotton

07/15/13

11.419

$0.836

$0.554

$1.094

1.31

07/08/13

11.416

$0.836

$0.554

$1.093

1.31

Pasture & Rangeland

07/15/13

48.147

$0.164

$0.089

$0.180

1.10

07/08/13

48.152

$0.164

$0.089

$0.180

1.10

Peanuts

07/15/13

1.319

$0.088

$0.052

$0.026

.30

07/08/13

1.319

$0.088

$0.052

$0.026

.30

Rice

07/15/13

2.100

$0.055

$0.038

$0.041

.75

07/08/13

2.100

$0.055

$0.038

$0.041

.75

Sorghum

07/15/13

4.679

$0.214

$0.138

$0.402

1.88

07/08/13

4.678

$0.214

$0.138

$0.402

1.88

Soybeans

07/15/13

65.172

$2.350

$1.473

$2.128

.91

07/08/13

65.165

$2.350

$1.473

$2.128

.91

Burley Tobacco

07/15/13

0.082

$0.026

$0.015

$0.036

1.35

07/08/13

0.082

$0.026

$0.015

$0.036

1.35

Flue-Cured Tobacco

07/15/13

0.201

$0.039

$0.022

$0.041

1.05

07/08/13

0.201

$0.039

$0.022

$0.041

1.05

Wheat

07/15/13

46.516

$1.788

$1.114

$0.758

.42

07/08/13

46.510

$1.788

$1.113

$0.759

.42

TOTAL

07/15/13

282.853

$11.106

$6.972

$17.384

1.57

07/08/13

282.834

$11.105

$6.972

$17.380

1.57


Following are the top 10 states receiving crop insurance payouts on 2012 production, accounting for more than 83 percent of the indemnities:

State

Amount
(billion dollars)

Illinois

$3.498

Iowa

2.013

Nebraska

1.557

Indiana

1.482

Texas

1.415

Kansas

1.372

Missouri

1.157

South Dakota

1.112

Wisconsin

0.455

Ohio

0.407

Total – Top 10 States

14.468

TOTAL ALL STATES

$17.384


As for 2013, net acres insured have reached 151 million, up from 129 million the prior week but still behind the year-ago pace of 179 million net acres insured at this point in the growing season.

Indemnities on 2013 are closing in on $1 billion, with $996 million paid out as of July 15, with wheat the largest chunk so far at $649 million.


Comments: The program remains a key risk management tool for producers and why House Ag Committee Chairman Frank Lucas (R-Okla.) signaled his concern about provisions in the Senate farm bill for the program.  The quick rise in payouts for 2013 production losses also means the program will be a key factor once again given the adverse conditions that have been seen in parts of the country so far this growing season.


 

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


 


 

 

 

 

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