U.S. Crop Insurance Indemnities Near $7.9 Billion for 2013 Crops

January 2, 2014 06:03 AM
 

via a special arrangement with Informa Economics, Inc.

Payouts still lag pace seen for 2012’s record payout level


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


U.S. crop insurance indemnities reached $7.859 billion as of Dec. 30, 2013, up more than $300 million from the prior week but still well behind the pace seen at this point for 2012 crops, according to Risk Management Agency (RMA) data.

At this point a year ago, indemnities for 2012 crop losses had totaled $10.026 billion, which at that point was still behind the prior record payout mark of $10.861 billion that had been registered for 2011 crop losses. Payouts for 2012 crop losses eventually climbed to a record $17.427 billion.

So far, only corn and wheat have indemnity levels over $1 billion, with corn at $2.854 billion and wheat at $2.2 billion.

The loss ratio for the overall program stands at 0.67 for 2013 losses, with that ratio (total indemnities paid out against total premiums paid in) at 1.0 or greater for cotton (1.12), rice (1.82), sorghum (1.05), flue-cured tobacco (1.43) and wheat (1.12).

2013 Crops

Week Ended

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

12/30/13

84.589

$4.673

$2.819

$2.854

.61

12/23/13

84.424

$4.663

$2.814

$2.658

.57

Cotton

12/30/13

9.764

$0.668

$0.438

$0.750

1.12

12/23/13

9.728

$0.665

$0.436

$0.735

1.11

Pasture & Rangeland

12/30/13

54.120

$0.196

$0.105

$0.142

.73

12/23/13

54.120

$0.196

$0.105

$0.142

.73

Peanuts

12/30/13

0.947

$0.046

$0.027

$0.015

.33

12/23/13

0.947

$0.046

$0.027

$0.013

.29

Rice

12/30/13

2.595

$0.061

$0.041

$0.111

1.82

12/23/13

2.592

$0.061

$0.041

$0.110

1.81

Sorghum

12/30/13

5.773

$0.276

$0.176

$0.291

1.05

12/23/13

5.761

$0.276

$0.176

$0.281

1.02

Soybeans

12/30/13

67.321

$2.486

$1.531

$0.748

.30

12/23/13

67.220

$2.483

$1.529

$0.708

.29

Burley Tobacco

12/30/13

0.065

$0.021

$0.012

$0.003

.14

12/23/13

0.065

$0.021

$0.012

$0.003

.13

Flue-Cured Tobacco

12/30/13

0.218

$0.047

$0.027

$0.067

1.43

12/23/13

0.218

$0.047

$0.027

$0.065

1.38

Wheat

12/30/13

48.431

$1.972

$1.243

$2.200

1.12

12/23/13

48.228

$1.962

$1.237

$2.182

1.11

TOTAL

12/23/13

295.620

$11.739

$7.254

$7.859

.67

12/23/13

295.070

$11.711

$7.238

$7.556

.65


Comments: The level of net acres insured remains at a record mark of 295.620 million which is above the 2012 level of 283.094 million net acres insured and the 2011 level of 265.912 million net acres insured. The level of net acres insured has been at 250 million or above since the 2007 crop year.


 

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


 


 

 

 

 

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