Crop Insurance Today Second Quarter 2021 - 30

Table 7
U.S. Crop-Hail Results, All Perils
CROP YEAR
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
1
LIABILITY
Mil. $
36,691
39,407
39,773
39,652
36,805
36,178
35,775
36,084
35,359
35,802
PREMIUM
Mil. $
843.2
955.8
953.2
991.7
979.7
983.3
958.8
987.3
1,019.6
1,010.0
LOSSES
Mil. $
974.5
704.3
646.2
1,209.9
740.3
880.1
882.0
937.4
996.5
1,154.4
Data as of May 11, 2021
Source: Adjusted Verified Totals, US only, for NCIS member companies combined with the data from non-members.
age. Additionally, program changes were also
made to allow greater flexibility for producers
who elected multi-county enterprise units
for both irrigated and non-irrigated practices
but later failed to qualify at time of acreage reporting.
Changes were also introduced to allow
units by summer fallow and continuous cropping
practices. These new options added to the
choices farmers could have in tailoring coverage
to their own unique farm operations, and yet
avoid unintended consequences occurring from
changes in planting intentions.
As the year progressed, RMA initiated discussions
with industry committees to evaluate
proposed improvements to the apple fruit policy,
and better articulate definitions and program
administration around direct marketing and
vertically integrated producers while proposing
other perennial crop procedure adjustments.
These discussions continue today. By late summer,
RMA published a contracted evaluation
of the Pasture, Rangeland and Forage program,
seeking comment on several proposed changes.
RMA is evaluating the comments received and
indicates additional research and follow up is
likely to be conducted. And lastly, RMA continued
to address 2018 Farm Bill guidance by initiating
contracted research and development for
potential coverage of greenhouses and locally
grown foods.
As fall began and the United States headed
for a Presidential election, the topic of climate
change became an emerging topic for the agricultural
industry. The crop insurance industry
joined with other major agribusiness and farmer-led
organizations to begin discussions and
collaboration on how agriculture could better
position itself to incentivize farmers to keep
pursuing appropriate measures to reduce its
carbon footprint, help in greenhouse gas reductions,
and further conservation and soil health
initiatives. RMA and the industry continued
LOSS RATIO
1.16
0.74
0.68
1.22
0.76
0.90
0.92
0.95
0.98
1.14
its support of published cover crop guidelines
along with other conservation efforts, all considered
good farming practices to help crop farmers
improve yields and see resulting premium
rate reductions.
The 2020 crop year brought RMA, AIPs, and
farmers an unprecedented number of agronomic
and operational challenges on various fronts
all compounded by Covid-19. Combined with
ongoing trade issues, extreme weather events,
and any remaining challenges from the coronavirus,
the Federal crop insurance program and
its stakeholders will continue to confront new
and complex agricultural issues as they emerge.
Along with assistance and support from NCIS,
and all of the program partners who work together
to make the Federal crop insurance program
successful, these efforts will continue to
reinforce the program mission of promoting the
national welfare by improving the economic stability
of agriculture through a sound, efficient,
and effective system of crop insurance.
U.S. Crop-Hail Experience
Crop-Hail insurance policies insure direct
damage from hail as the primary cause of loss.
In addition to hail damage, many policy forms
carry endorsements for additional perils such
wind, fire, vandalism, and theft. This section reports
the results for all losses on hail policies,
including the experience of NCIS non-member
companies not included in NCIS' Annual Statistical
Summary reports.
Crop-Hail premium had risen gradually over
the past 10 years but was down slightly in 2020 at
$1.010 billion. This is a decrease of $9.6 million
in premium, down from $1.019 billion in 2019.
Crop-Hail provided $35.8 billion in private insurance
protection to U.S. farmers in 2020, and
30 SECONDQUARTER2021

Crop Insurance Today Second Quarter 2021

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