Crop Insurance Today Second Quarter 2021 - 26

Figure 13
State Loss Ratios for 2020: Corn
Loss Ratio
2.00
1.50
1.00
0.50
0.00
IL
IA
Data as of May 11, 2020
Source: RMA Summary of Business
Iowa results were driven by the derecho. Casual
inspection of Figure 13 further reveals the importance
of Iowa in the mix of Cornbelt states
driving the national results well above a 50 percent
loss ratio.
Figure 14 tells a somewhat different story for
soybeans. At the national level, the loss ratio for
soybean RP plans was approximately 50 percent,
considerably less than the national results for
corn RP plans. Remarkably, the individual state
loss ratios for soybean plans were at or below 50
percent for 2020.
[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 ReFigure
14
State Loss Ratios for 2019: Soybeans
Loss Ratio
2.00
1.50
1.00
0.50
0.00
IL
IA
Data as of May 11, 2021
Source: RMA Summary of Business
26 SECONDQUARTER2021
NE
MN
IN
MO
MI
WI
US
Revenue Plans (RP, RPHPE)
Yield Plan (YP)
port (WASDE), various issues; NASS Quick Stats;
RMA Manager's Bulletins, Price Discovery Application,
and Actuarial Information Browser.]
Program and Policy
Developments
Flexibility and Adaptability
During Covid-19
Just as the Federal crop insurance program
was finishing up response to a record number of
2019 crop year prevented planting acres, along
with a late harvest due to the wet weather, it suddenly
faced a crisis which few, if any, program
participants had ever previously experienced.
NE
MN
IN
MO
MI
WI
US
Revenue Plans (RP, RPHPE)
Yield Plan (YP)
As March unfolded, Covid-19 began to spread
rapidly across the United States. With it came
new social distancing, quarantine, and " stay at
home " orders handed down by Federal and State
authorities. Most of these orders were foreign to
farmers, ranchers, and most everyone across the
agricultural landscape. Suddenly, customer service
as most knew and had come to expect was
quickly being challenged as there suddenly was
no " business as usual. "
Almost immediately the crop insurance
industry began to react, mobilize, and utilize
previously developed business pandemic
contingency plans, focusing on the health and
safety of employees, agents, loss adjusters, and
policyholders. The result was that most people
began working from home full-time, agents and
loss adjusters practiced social distancing, meetings
and on-site field training activities were
canceled suddenly, and a list of communication
challenges began to grow. But because crop insurance
is the primary safety net for farmer and
rancher crop losses, the RMA and the crop insurance
delivery system began to collaborate
and take steps to ensure that a viable crop insurance
program would continue to be available to
rural America, helping protect the nation's food
and fiber supply.
As the realization and impacts of Covid-19
became increasingly apparent by late March,
RMA and the crop insurance industry moved
swiftly to establish weekly conference calls addressing
numerous issues arising from a new
way of life. This allowed for newly encountered
challenges to be quickly identified and effective
solutions implemented to avoid disruptions in
delivery and loss adjustment services that were
critical for farmers and ranchers. Suddenly there
was a greater reliance on technology, which became
more critical than ever. Virtual platforms
became filled with meetings and included new
ways of viewing and coordinating activities with
work associates and partners. Within the first 60
days of the Covid-19 breakout, at least a dozen
RMA Manager's Bulletins were released addressing
various matters and issues, which were
often identified in large part by the leadership
from NCIS Committees. The bulletins included
waiving interest on producer premiums that
came due during critical stay at home orders,
extending time to file production reports and
complete perennial crop inspections, and creating
efficiencies in sending written agreements
between RMA and approved insurance provid
Crop Insurance Today Second Quarter 2021

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