Crop Insurance Today Second Quarter 2019 - 21

during trip there to meet with the Florida Strawberry Growers Association.
Along with their direct outreach activities, RMA provided support for continued risk
management programs, focusing attention on
17 states that have low levels of crop insurance
participation and availability. On May 29, the
agency announced $4.73 million in funding for
crop insurance education in the 17 targeted states
along with $4.16 million in funding for general
nationwide training on crop insurance and other
risk management tools. During the year, RMA
focused on providing information and producer
education in the following priority areas: Crop
Insurance 101, Whole-Farm Revenue Protection, Rainfall Index Insurance, Livestock Products, Cover Crops, Crop Insurance Education
to Tribes, Food Handling and Produce Safety,
Drought, Irrigation/Limited Irrigation, and
Recordkeeping.
RMA demonstrated its commitment to expanding commodity coverage through the development of new insurance plans. Early in 2018
the FCIC board of directors approved the Dairy
Revenue Protection (DRP) plan of insurance.
The promising new program is designed to insure against unexpected declines in quarterly
revenue, with the guarantee based on futures
prices for milk or component prices for specific dairy products and actual milk revenues. The
first available coverage was to begin with the first
quarter of 2019.
Near the end of 2018, RMA announced the
development of the Multi-County Enterprise
Unit (MCEU), another example of the continuing evolution in Federal crop insurance. The
endorsement was created to respond to farmer
requests to allow incorporation of acreage, not
qualifying for enterprise unit status on its own,
from one county into an enterprise unit for a
contiguous county. The MCEU attaches to eligible policies and allows producers to combine
acres of an insured crop by irrigation practice,
where the contiguous acres are in the same state
in adjoining counties. The MCEU is available for
crops with a November 30, 2018, and later contract date and includes barely, wheat, corn, grain
sorghum, soybeans, cotton, peanuts, rice, canola,
and sunflowers.
Over the course of 2018, RMA, the AIPs, and
farmers were faced with a wide variety of issues
and challenges and the program met them. The
evolution of Federal crop insurance will continue; new policies will be added, existing plans

Table 7 U.S. Crop-Hail Results, All Perils
CROP YEAR

LIABILITY
Mil. $

PREMIUM
Mil. $

LOSSES
Mil. $

LOSS RATIO

2009
2010
2011
2012
2013
2014
2015
2016
2017
2018

25,493
27,170
36,691
39,407
39,773
39,652
36,805
36,178
35,775
36,084

621.3
682.2
843.2
955.8
953.2
991.7
979.7
983.3
958.8
987.3

565.9
460.4
974.5
704.3
646.2
1,209.9
740.3
880.1
882.0
937.4

0.91
0.67
1.16
0.74
0.68
1.22
0.76
0.90
0.92
0.95

Data as of April 22, 2019
Source: Adjusted Verified Totals, U.S. only, for NCIS member companies combined with the data from non-members.

will be modified, and unexpected weather events
will undoubtedly test the resources of the agency, AIPs and farmers in the future. It remains
the mission of this public private partnership,
with the assistance of NCIS, to continue weighing options and selecting the best path forward
in response to weather and market disruptions
and opportunities to improve the overall performance of the Federal risk management system.

U.S. Crop-Hail Experience

Crop-Hail insurance are policies that insure
direct damage from hail as the primary cause
of loss. In addition to hail damage, many policy
forms carry endorsements for additional perils
such wind, fire, vandalism, and theft. This section
reports the results for all losses on hail policies,
including the experience of NCIS non-member
companies not included in NCIS' Annual Statistical Summary reports.
Crop-Hail premium has risen substantially

over the past ten years. Premium for 2018 was
$987.3 million, an increase of $28.5 million, or
3.0 percent, from $958.8 million in 2017. CropHail provided $36.1 billion in private insurance
protection to U.S. farmers in 2018, while losses
paid out were $937 million (Table 7), a 6.3 percent increase over 2017.
The program loss ratio, defined as paid losses
divided by premium written, increased to 0.95,
up from 0.92 in 2017 and 0.90 in 2016. While the
2018 loss ratio was much better than the record
loss ratio of 1.22 in 2014, six of the past ten years
have had loss ratios of 0.90 or more.
Large storms were only marginally more severe in 2018 compared to 2017, with four days
exceeding $23 million in losses, up from two in
the prior year. Eight of the top ten storm dates occurred between June 6 through July 18. The single worst day was June 30, when a storm caused
damages of more than $34 million, primarily in
Nebraska ($26 million) but Iowa, Kansas, Minne-

Table 8 Canadian Crop-Hail Results, All Perils
CROP YEAR

PREMIUM
Mil. C$

LOSSES
Mil. C$

NUMBER
OF CLAIMS

LOSS RATIO1

2009
20102
20112
2012
2013
2014
2015
2016
2017
2018

262
263
269
341
344
316
274
302
286
270

76
155
164
280
172
249
167
269
97
171

4,075
16,000
15,000
21,600
13,321
13,372
13,222
20,325
8,633
11,709

0.29
0.59
0.61
0.82
0.50
0.79
0.61
0.89
0.34
0.63

Loss ratios do not reflect loss adjustment costs
2
Number of claims exceeded value indicated
Data as of November 20, 2019
Source: The Canadian Hail Association
1

CROPINSURANCE TODAY®

21



Crop Insurance Today Second Quarter 2019

Table of Contents for the Digital Edition of Crop Insurance Today Second Quarter 2019

No label
Crop Insurance Today Second Quarter 2019 - No label
Crop Insurance Today Second Quarter 2019 - Cover2
Crop Insurance Today Second Quarter 2019 - 1
Crop Insurance Today Second Quarter 2019 - 2
Crop Insurance Today Second Quarter 2019 - 3
Crop Insurance Today Second Quarter 2019 - 4
Crop Insurance Today Second Quarter 2019 - 5
Crop Insurance Today Second Quarter 2019 - 6
Crop Insurance Today Second Quarter 2019 - 7
Crop Insurance Today Second Quarter 2019 - 8
Crop Insurance Today Second Quarter 2019 - 9
Crop Insurance Today Second Quarter 2019 - 10
Crop Insurance Today Second Quarter 2019 - 11
Crop Insurance Today Second Quarter 2019 - 12
Crop Insurance Today Second Quarter 2019 - 13
Crop Insurance Today Second Quarter 2019 - 14
Crop Insurance Today Second Quarter 2019 - 15
Crop Insurance Today Second Quarter 2019 - 16
Crop Insurance Today Second Quarter 2019 - 17
Crop Insurance Today Second Quarter 2019 - 18
Crop Insurance Today Second Quarter 2019 - 19
Crop Insurance Today Second Quarter 2019 - 20
Crop Insurance Today Second Quarter 2019 - 21
Crop Insurance Today Second Quarter 2019 - 22
Crop Insurance Today Second Quarter 2019 - 25
Crop Insurance Today Second Quarter 2019 - 24
Crop Insurance Today Second Quarter 2019 - 25
Crop Insurance Today Second Quarter 2019 - 26
Crop Insurance Today Second Quarter 2019 - 27
Crop Insurance Today Second Quarter 2019 - 28
Crop Insurance Today Second Quarter 2019 - 29
Crop Insurance Today Second Quarter 2019 - 30
Crop Insurance Today Second Quarter 2019 - 31
Crop Insurance Today Second Quarter 2019 - 32
Crop Insurance Today Second Quarter 2019 - 33
Crop Insurance Today Second Quarter 2019 - 34
Crop Insurance Today Second Quarter 2019 - 35
Crop Insurance Today Second Quarter 2019 - 36
Crop Insurance Today Second Quarter 2019 - 37
Crop Insurance Today Second Quarter 2019 - 38
Crop Insurance Today Second Quarter 2019 - 39
Crop Insurance Today Second Quarter 2019 - 40
Crop Insurance Today Second Quarter 2019 - 41
Crop Insurance Today Second Quarter 2019 - 42
Crop Insurance Today Second Quarter 2019 - 43
Crop Insurance Today Second Quarter 2019 - 44
Crop Insurance Today Second Quarter 2019 - Cover3
Crop Insurance Today Second Quarter 2019 - Cover4
https://www.nxtbook.com/allen/cint/54-1
https://www.nxtbook.com/allen/cint/53-4
https://www.nxtbook.com/allen/cint/53-03
https://www.nxtbook.com/allen/cint/53-02
https://www.nxtbook.com/allen/cint/53-01
https://www.nxtbook.com/allen/cint/52-04
https://www.nxtbook.com/allen/cint/52-03
https://www.nxtbook.com/allen/cint/52-02
https://www.nxtbook.com/allen/cint/52-01
http://www.brightcopy.net/allen/cint/51-04
http://www.brightcopy.net/allen/cint/51-03
http://www.brightcopy.net/allen/cint/51-02
http://www.brightcopy.net/allen/cint/51-01
http://www.brightcopy.net/allen/cint/50-04
http://www.brightcopy.net/allen/cint/50-3
http://www.brightcopy.net/allen/cint/50-2
http://www.brightcopy.net/allen/cint/50-1
http://www.brightcopy.net/allen/cint/49-4
http://www.brightcopy.net/allen/cint/49-3
http://www.brightcopy.net/allen/cint/may2016
http://www.brightcopy.net/allen/cint/february2016
http://www.brightcopy.net/allen/cint/november2015
http://www.brightcopy.net/allen/cint/september2015
https://www.nxtbook.com/allen/cint/may2015
https://www.nxtbook.com/allen/cint/february2015
https://www.nxtbook.com/allen/cint/november2014
https://www.nxtbook.com/allen/cint/september2014
https://www.nxtbook.com/allen/cint/may2014
https://www.nxtbook.com/allen/cint/february2014
https://www.nxtbook.com/allen/cint/november2013
https://www.nxtbook.com/allen/cint/august2013
https://www.nxtbook.com/allen/cint/may2013
https://www.nxtbook.com/allen/cint/february2013
https://www.nxtbook.com/allen/cint/november2012
https://www.nxtbook.com/allen/cint/august2012
https://www.nxtbook.com/allen/cint/may2012
https://www.nxtbook.com/allen/cint/february2012
https://www.nxtbook.com/allen/cint/44-4
https://www.nxtbookmedia.com