Crop Insurance Today Second Quarter 2021 - 29

with more than $207 million, followed by Florida
($141.1), Georgia ($107.4), Texas ($77.8), and
South Carolina ($63.4). Mother Nature did not
disappoint when it came to the 2020 hurricane
season. There were seven named hurricanes
impacting the United States that triggered over
$149 million in HIP-WI indemnity payments
resulting in a loss ratio of 1.39 (Figure 17). More
than 4,000 policies received an indemnity with
the most losses paid in North Carolina ($45.3
million?) followed by Louisiana ($28.6 million?),
Texas ($24.8 million?), and South Carolina
($20.8 million?). This new program shows
considerable promise for addressing hurricane
losses in the Southeast and South and appears
positioned to grow in the future.
Through ongoing Board oversight, RMA and
Figure 16
HIP-WI: Liability
Liability
000-1,140
1,140-173,967
173,967-721,841
721,841-2,082,627
2,082,627-3,455,461
3,455,461-7,042,910
7,042,910-22,049,931
private developer efforts, targeted development
of policies for various tree crops including California
citrus trees, Florida fruit trees, and apple
trees. In addition, the Board approved a new
Production Revenue History program for Florida
strawberries with a goal to eventually replace
the Dollar Plan of insurance. Coverage improvements
were also made to the pecan policy for
optional unit flexibility tied to orchards on contiguous
land, offering different coverage levels
by type, and updating premium rates. The Board
also moved to make several enhancements to
the Livestock Risk Protection, Livestock Gross
Margin, and the Dairy Revenue Protection programs
to encourage greater participation and
make the policies more flexible and responsive
to livestock producers.
RMA also continued making improvements
to the Whole Farm Revenue Protection (WFRP)
policy by allowing direct marketers to combine
expected revenue from multiple commodities
and report the combined expected revenue under
a single commodity code, while also maintaining
a diversification factor equivalent to two
commodities to qualify for an 80 percent coverage
level. Current year premiums were also
disallowed from being offset from any previous
years' indemnity due, along with several other
changes enhancing the coverage for producers.
The WFRP policy continues to account for over
$2.2 billion of the program's overall liability, the
sixth largest plan of insurance in the crop insurance
portfolio.
As part of their annual efforts, RMA continued
to expand several county crop programs for
fruit, vegetable, and specialty crops addressing
farmer requests for wider availability of coverNCIS
2020
Data as of May 11.2021
Source: RMA Summary of Business
Figure 17
HIP-WI: Loss Ratios
Loss Ratios
0%-0%
0%-369%
369%-477%
477%-547%
547%-702%
702%-1,607%
1,607%-2,767%
2,767%-4,405%
NCIS 2020
Data as of May 11.2021
Source: RMA Summary of Business
CROPINSURANCE TODAY®
29
Crop Insurance Today Second Quarter 2021

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