Crop Insurance Indemnities Over $6 Billion for 2015 Crops

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Crop insurance indemnities have topped $6 billion for 2015 crops, down slightly from year-ago and the smallest payouts since the 2010 crop year, according to Risk Management Agency (RMA) data.

Corn indemnities stand at $1.655 billion, well below the $3.82 billion paid out for 2014. Cotton indemnities are at $342 million, down considerably from $721 million paid out for 2014. Soybean payouts are at $1.147 billion, under the $1.220 billion for 2014. Wheat payouts stand at $1.213 billion, nearly on par with the $1.220 billion for 2014.

The loss ratio for the program is at .63, the highest since the 2014 and 2011 crop years.

Total premiums paid in are at $9.748 billion, the first time since the 2011 crop year that they have been under $10 billion.

Comments: Payouts for 2015 crops are still likely to increase some over the coming weeks, as at this point in 2014, indemnities were at $8.95 billion and the current total for 2014 crops stands at $9.126. If that same path follows this season, that would take 2015-crop indemnities to around $6.211 billion. That would still put 2015 payouts at the smallest point since the 2010 crop year when indemnities totaled $4.254 billion. However, the net acres insured stands at a record 298.719 million, eclipsing the prior high-water mark of 296.100 million net acres insured for the 2013 crop year.

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