Crop Insurance Today Second Quarter 2021 - 20

Table 3
Federal Crop Insurance Program Performance, Gross Basis1
CROP
YEAR
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
1
Table 4
Top 10 Premiums and Indemnities
Ranked by State and Crop for 2020
Rank by State
Premiums by State
RANK
1
2
3
4
5
6
7
8
9
10
STATE
TX
ND
IL
KS
IA
SD
MN
NE
CA
MO
Top 10 Sub-Total
All Other
U.S. Total
Top 10 Share of U.S.
PREMIUMS (MIL.$)
1,023.0
866.5
644.2
633.6
609.4
598.6
576.1
513.9
476.3
385.2
6,326.9
3,737.4
10,064.3
63%
Premiums by State
RANK
1
2
3
4
5
6
7
8
9
10
STATE
Corn
Soybeans
Wheat
Cotton
PRF
Grain Sorghum
Rice
Whole Farm Revenue
Apples
Dry Beans
Top 10 Sub-Total
All Other
U.S. Total
Top 10 Share of U.S.
Source: RMA Summary of Business as of May 11, 2021
20 SECONDQUARTER2021
PREMIUMS (MIL.$)
3,508.2
2,002.9
894.9
870.8
676.4
156.4
137.1
131.9
121.7
110.0
8,610.3
1,454.0
10,064.3
86%
RANK
1
2
3
4
5
6
7
8
9
10
RANK
1
2
3
4
5
6
7
8
9
10
Indemnity by State
STATE
TX
ND
IA
CA
SD
NC
AR
CO
KS
MN
Top 10 Sub-Total
All Other
U.S. Total
Top 10 Share of U.S.
Rank by Crop
Indemnity by State
STATE
Corn
Cotton
Soybeans
PRF
Wheat
Grapes
Rice
Grain Sorghum
Peanuts
Flue Cured Tobacco
Top 10 Sub-Total
All Other
U.S. Total
Top 10 Share of U.S.
PREMIUMS (MIL.$)
2,628.7
1,322.0
984.7
890.2
492.2
288.4
256.8
116.8
109.6
103.8
7,193.2
1,164.6
8,357.8
86%
PREMIUMS (MIL.$)
1,501.0
1,039.9
625.9
598.1
500.8
285.9
268.7
262.4
246.1
231.3
5,560.0
2,797.8
8,357.8
67%
POLICIES WITH
PREMIUM
1,152
1,174
1,224
1,207
1,205
1,160
1,125
1,108
1,106
1,112
Data as of May 11, 2021
Source: RMA Summary of Business
11 is just that, a picture, or in the lyrics of Rod
Stewart, " ...every picture tells a story, don't it... "
Focusing on the Midwest, the map reveals the
remarkable underwriting results in several of
the major corn and soybean states. Specifically,
the states of Illinois, Indiana, Kansas, Minnesota,
Missouri, Nebraska, and Ohio all experienced
loss ratios under 50 percent for the FCI
program. The exception being Iowa at a loss
ratio of 103 percent as a result of the derecho
discussed elsewhere in this article.
Contrast the experience of the Midwest with
that of the Southwest region encompassing Arizona,
New Mexico, and Texas that, along with
California, sustained loss ratios in excess of 100
percent. The primary cause of loss in these states
was drought and/or fire. The Southeastern and
Delta states also experienced loss ratios in excess
of 100 percent primarily due to excess moisture
and hurricanes.
Revenue Products
The projected base prices used to establish
the value of a crop and the insured liability under
the Revenue Protection and Yield Protection
forms of insurance policies are shown in Table
5 for crop years 2014 through 2021. Projected
base prices are the average of futures prices
during the discovery month, i.e., the month preceding
the sales closing date for a policy.
From 2019 to2020, the projected base prices
fell for all commodities reflecting the overall
downturn in the farm economy and trade implications
with China. The exception was rice,
which increased from 10.80 to 12.10 per hundredweight;
a 12 percent increase.
Remarkably and fortunately for 2021, comUNITS
WITH
PREMIUM
Thousands
2,527
2,529
2,584
2,539
2,547
2,442
2,370
2,330
2,355
2,433
114,210
117,160
123,811
109,904
102,539
100,623
106,062
110,162
109,865
113,929
11,972
11,117
11,808
10,073
9,769
9,329
10,071
9,896
10,128
10,064
LIABILITY
PREMIUM
FARM-PAID
PREMIUM
4,509
4,138
4,511
3,858
3,679
3,462
3,716
3,630
3,758
3,747
INDEMNITY
Million Dollars
10,869
17,451
12,085
9,136
6,316
3,913
5,432
7,322
10,592
8,358
1,103
-6,334
-277
938
3,452
5,416
4,639
2,574
-464
1,707
GROSS
UNDERWRITING GAIN
INSURED
ACRES
Million
266
283
296
295
296
290
312
335
379
398
0.91
1.57
1.02
0.91
0.65
0.42
0.54
0.74
1.05
0.83
LOSS
RATIO
Crop Insurance Today Second Quarter 2021

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