As the claims come in from one of the worst droughts in decades, farmers and ranchers across the country are receiving indemnity payments for the losses they have incurred. As of March 4, 2013, more than $15.4 billion has been sent to farmers. Farmers will invest more than $4.1 billion to purchase more than 1.2 million crop insurance policies.
- In 2012, farmers invested more than $4.1 billion to purchase more than 1.2 million crop insurance policies, protecting 128 different crops.
- Crop insurance policies protect more than 281 million acres of planted land.
- $28.6 billion: The amount of money farmers have spent out of their own pockets to purchase the protection of crop insurance in the past decade.
- Illinois has the highest loss ratio at 3.55.
- 19 states have loss ratios exceeding 1.05 – meaning that for every $1 paid in premiums, companies are paying out $1.05 in indemnities. These states include: Illinois, Missouri, Kentucky, Nebraska, Iowa, Indiana, Kansas, South Dakota, New Mexico, New Hampshire, New York, Wisconsin, Texas, Colorado, Massachusetts, Tennessee, Wyoming, Michigan and Ohio.
- Nationally, the loss ratio is 1.39.
The 2012 drought – the worst this country has seen in decades – is now becoming the 2013 drought. In fact, 54% of the continental U.S. – including a good portion of the nation’s breadbasket – remains in some stage of drought, compared to roughly 38% a year ago, according to the Feb. 26, 2013 U.S. Drought Monitor. In other words, many farmers are starting off 2013 in worse shape than they were at the start of 2012.
Every county in the states of Iowa, Minnesota, Oklahoma, Kansas, Nebraska, South Dakota, Colorado, Wyoming, New Mexico, Arizona and Utah are either abnormally dry or in some level of drought.