What is in this article?:
- Distribution of Crop Insurance Net Farm Payments by Crop, State
- Net crop insurance payments by crop
- Distribution of net farm insurance payments and yield variability
- Policy Issues
Net crop insurance payments by crop
Over the 2001-2012 crops, net insurance payment as a share of insured liability ranged from 0.8% for rice to 9.7% for sorghum (see Figure 1). Stated somewhat differently, net insurance payment as a share of the value of production was 12.1 times greater for sorghum than for rice. Soybeans and corn had the next lowest payment ratios to rice. On the other hand, cotton has almost the same payment ratio as sorghum. To illustrate the interpretation of these numbers, rice producers received net payments from crop insurance that equaled to 0.8% of the value of rice production sorghum producers received net payments from crop insurance that equaled 9.7% of the value of sorghum production.
Net crop insurance payments by state
To simplify the presentation and discussion of the distribution of net insurance payments by state, Figure 2 contains net insurance payments as a share of the value of production only for the 10 largest states in terms of the value of production of all field crops between 2001 and 2011. The lowest share was 0.6% for Minnesota while the highest share was 10.8% for Texas. Among all states for which information on field crop production value was reported by the U.S. Department of Agriculture, Arizona was the lowest at 0.2% while Texas was the highest.