Crop Insurance Today Second Quarter 2021 - 18

Table 2
Insured Acres by Major Crop1
CROP
Wheat
Corn
Sorghum
Soybeans
Upland Cotton
Pasture, Range & Forage
Total (Above Crops)
Total (All Crops)
NASS Planted Acres (Field Crops)
1
Data as of May 11, 2021 In (000) acres.
Source: RMA Summary of Business, NASS Quick Stats
producers between prices received and paid.
[The information sources for this section were:
USDA, Quick Stats https://quickstats.nass.usda.
gov, USDA, OCE, WASDE, http://usda.gov/oce/
commodity/wasde and USDA, FAS, Market and
Trade Data, PSD Online, https://apps.fas.usda.
gov/psdonline/app/index.html#/app/home]
Federal Crop Insurance
Experience
Performance of the Federal Crop Insurance
(FCI) program in 2020 was an interesting contrast
to the 2019 crop year. Readers will recall
2019 as the " year of prevented planting. " In 2020,
Figure 10
Share of Insured Acres Covered at 70% or Higher
90
80
70
60
50
40
30
20
10
Data as of May 11, 2021
Source: RMA Summary of Business
18 SECONDQUARTER2021
total insured acreage increased by 5.1 percent
(Table 2), with Pasture, Rangeland and Forage
(PRF) continuing to expand, increasing by almost
20 million acres in 2020, a 14.3 percent increase
over 2019. Insured cotton acreage declined
by 10.3 percent along with a 6.6 percent decline in
insured wheat acreage. Offsetting these declines
were increases of 5.9 percent and 10.2 percent in
insured acres of soybeans and sorghum, respectively.
Although there was an increase in total
acres insured and some acreage shifts among the
major crops, coverage levels for the U.S. remain
stable as illustrated in Figure 10. More than 80
percent of U.S. insurable acres are protected at
2018
38,725
78,162
4,191
78,863
13,184
98,284
311,409
335,166
319,305
2019
38,738
86,952
4,067
71,437
13,110
140,000
354,305
378,808
303,073
2020
36,167
84,324
4,482
75,647
11,754
160,000
372,375
398,278
310,114
CHANGE % CHANGE
2019/20
-2,571
-2,628
415
4,210
-1,356
20,000
18,071
19,470
7,041
2019/20
-6.6
-3.0
10.2
5.9
-10.3
14.3
5.1
5.1
2.3
coverage levels exceeding 70 percent.
FCI underwriting performance is provided
in Table 3. Indemnities for 2020 were approximately
$8.4 billion compared to $10.6 billion
in 2019. The loss ratio (indemnity divided by
premium) was 83 percent for 2020, considerably
less than the 105 percent loss ratio experienced
in 2019. Table 4 provides a breakdown of premiums
and indemnities ranked by both state
and crop for 2020. In terms of premium volume,
Texas, North Dakota, Illinois, Kansas, and Iowa
were the top-ranking states for 2020. With respect
to indemnities, Texas, North Dakota, and
Iowa were the top three ranking states. It should
be no surprise that corn, soybeans, and wheat
were the top three crops in premium volume.
And respectively, corn, cotton, and soybean indemnities
were $2.6 billion, $1.3 billion, and just
less than $1 billion in 2020.
It is often said that " a picture is worth a thousand
words. " The U.S. Loss Ratio map in Figure
Share of Insured Acres, %
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020

https://quickstats.nass.usda.gov https://quickstats.nass.usda.gov http://usda.gov/oce/commodity/wasde http://usda.gov/oce/commodity/wasde https://apps.fas.usda.gov/psdonline/app/index.html#/app/home https://apps.fas.usda.gov/psdonline/app/index.html#/app/home

Crop Insurance Today Second Quarter 2021

Table of Contents for the Digital Edition of Crop Insurance Today Second Quarter 2021