Crop Insurance Today Second Quarter 2020 - 18

Prices for 2019 RP and RP-HPE Plans of Insurance
Base

Harvest

$/Bushel
12.00

Base

9.54

Harvest
12.10

12.0

10.00

10.80

10.0

9.25

8.00

8.00
5.77

5.74

6.00

4.63

4.00 3.90

6.00

5.05

4.00

0.00

0.00
U
Co plan
tto d
n

W
W int
he e r
at

So

yb

ea

rn
Co

0.74 0.63

S
W p r in
he g
at

2.00

ns

2.00

ce

4.00

$/lb. or $/cwt
14.00

Ri

Fig. 11

Data as of April 21, 2020
Source: RMA Actuarial Information Browser

those for winter wheat decreased, and those for
the remaining crops were unchanged.
Figure 11 shows the change between the base
prices established early in 2019 to the harvest
prices established close to the end of the growing
season. The harvest prices shown are the average
daily prices in the harvest month for the same
Fig. 12

futures contract used to establish the base price
earlier in the year. Harvest prices are important
as they are used to calculate the farmer's actual
revenue, which is used to establish the amount of
indemnity provided by Revenue Protection (RP)
policies.
The harvest price for soybeans declined to

State Loss Ratios for 2019: Corn

Loss Ratio
3.00

Revenue Plans (RP,RPHPE)

Yield Plan (YP)

2.50
2.00
1.50
1.00
0.50
0.00

IL

IA

NE

MN

IN

MO

MI

WI

US

MI

WI

US

Data as of April 13, 2020
Source: RMA Summary of Business

Fig. 13

State Loss Ratios for 2019: Soybeans

Loss Ratio
3.00

Revenue Plans (RP,RPHPE)

Yield Plan (YP)

2.50
2.00
1.50
1.00
0.50
0.00

IL

IA

Data as of April 13, 2020
Source: RMA Summary of Business

18

SECONDQUARTER2020

NE

MN

IN

MO

$9.25 from a base price of $9.54 at the start of
the year, a drop of three percent. Corn, winter
wheat, spring wheat and cotton also experienced declines of 2.5 percent, 19 percent, 12.5
percent, and 14.9 percent, respectively, during
the year. In contrast, rice experienced a price
increase of 12 percent.
Figure 12 shows loss ratios by state separately for the yield plan (YP) and the revenue plans
(RP and RP-HPE combined, referred to as RP)
that covered corn in the Corn Belt and the United
States. The Corn Belt includes the states of Illinois, Iowa, Nebraska, Minnesota, Indiana, Missouri, Michigan, and Wisconsin. 2019 premium
written under yield and revenue protection plans
combined was $3.6 billion for corn, of which 58
percent was concentrated in the Corn Belt. Revenue protection plans were much more popular,
representing 98 percent of written premium in
the Corn Belt and 96 percent in the remaining
states. On a countrywide basis, 58 percent of RP
premium was written in the Corn Belt, but only
39 percent of YP premium.
Figure 12 shows that YP for corn had consistently higher loss ratios in every state within the
Corn Belt as well as in the United States. Only
two states within the Corn Belt managed underwriting gains, Iowa and Nebraska, and this was
for both YP and RP.
Figure 13 shows similar information as that
in Figure 12 but focuses on soybeans rather than
corn. The same set of states is reviewed and for
ease of identification will be referred to as the
Corn Belt. Overall, the patterns observed for
soybeans resemble those for corn. 2019 premium
written under yield and revenue protection plans
combined for soybeans was $1.8 billion, of which
54 percent was concentrated in the Corn Belt.
Revenue protection plans were much more popular, representing 98 percent of written premium
in the Corn Belt and 95 percent in the remaining
states. On a countrywide basis, 55 percent of RP
premium was written in the Corn Belt, but only
31 percent of YP premium.
Figure 13 shows that, similar to corn, YP soybeans had significantly higher loss ratios in every
state within the Corn Belt as well as in the United
States. The same two states within the Corn Belt
managed underwriting gains for both YP and RP,
Iowa and Nebraska. Both Minnesota and Missouri also had loss ratios under 1.00 for RP.
[Information sources for this section includes:
USDA, Foreign Agricultural Service, P, S & D database; Office of the Chief Economist; World Agricultural Supply and Demand Estimates Report



Crop Insurance Today Second Quarter 2020

Table of Contents for the Digital Edition of Crop Insurance Today Second Quarter 2020

No label
Crop Insurance Today Second Quarter 2020 - No label
Crop Insurance Today Second Quarter 2020 - Cover2
Crop Insurance Today Second Quarter 2020 - 1
Crop Insurance Today Second Quarter 2020 - 2
Crop Insurance Today Second Quarter 2020 - 3
Crop Insurance Today Second Quarter 2020 - 4
Crop Insurance Today Second Quarter 2020 - 5
Crop Insurance Today Second Quarter 2020 - 6
Crop Insurance Today Second Quarter 2020 - 7
Crop Insurance Today Second Quarter 2020 - 8
Crop Insurance Today Second Quarter 2020 - 9
Crop Insurance Today Second Quarter 2020 - 10
Crop Insurance Today Second Quarter 2020 - 11
Crop Insurance Today Second Quarter 2020 - 12
Crop Insurance Today Second Quarter 2020 - 13
Crop Insurance Today Second Quarter 2020 - 14
Crop Insurance Today Second Quarter 2020 - 15
Crop Insurance Today Second Quarter 2020 - 16
Crop Insurance Today Second Quarter 2020 - 17
Crop Insurance Today Second Quarter 2020 - 18
Crop Insurance Today Second Quarter 2020 - 19
Crop Insurance Today Second Quarter 2020 - 20
Crop Insurance Today Second Quarter 2020 - 21
Crop Insurance Today Second Quarter 2020 - 22
Crop Insurance Today Second Quarter 2020 - 23
Crop Insurance Today Second Quarter 2020 - 24
Crop Insurance Today Second Quarter 2020 - 25
Crop Insurance Today Second Quarter 2020 - 26
Crop Insurance Today Second Quarter 2020 - 27
Crop Insurance Today Second Quarter 2020 - 28
Crop Insurance Today Second Quarter 2020 - 29
Crop Insurance Today Second Quarter 2020 - 30
Crop Insurance Today Second Quarter 2020 - 31
Crop Insurance Today Second Quarter 2020 - 32
Crop Insurance Today Second Quarter 2020 - 33
Crop Insurance Today Second Quarter 2020 - 34
Crop Insurance Today Second Quarter 2020 - 35
Crop Insurance Today Second Quarter 2020 - 36
Crop Insurance Today Second Quarter 2020 - 37
Crop Insurance Today Second Quarter 2020 - 38
Crop Insurance Today Second Quarter 2020 - 39
Crop Insurance Today Second Quarter 2020 - 40
Crop Insurance Today Second Quarter 2020 - 41
Crop Insurance Today Second Quarter 2020 - 42
Crop Insurance Today Second Quarter 2020 - 43
Crop Insurance Today Second Quarter 2020 - 44
Crop Insurance Today Second Quarter 2020 - Cover3
Crop Insurance Today Second Quarter 2020 - 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