Crop Insurance Today May 2015 - (Page 17)

Table 6. Top 10: Premiums & Indemnities by State and Crop, 20141 Figure 17. 2014 Causes of Loss STATE PREMIUMS STATE INDEMNITIES CROP PREMIUMS CROP INDEMNITIES MIL.$ MIL.$ MIL.$ MIL.$ TX 979.8 IA 1,390.5 Corn 3,647.4 Corn 3,783.1 ND 913.9 MN 1,386.6 Soybean 2,259.2 Wheat 1,627.8 LA 738.16 TX 1,076.3 Wheat 1,452.0 Soybean 1,211.5 SD 717.20 KS 613.4 Cotton 722.7 Cotton 719.0 IL 679.0 ND 569.0 Sorg. 210.1 PRF 178.7 Grain KS 668.6 NE 502.5 PRF 199.2 Sorg. 126.5 Grain MN 656.8 CA 414.1 Apples 101.4 Rice 138.8 NE 576.2 OK 379.5 Pototoes 98.2 ELS 89.1 CA 389.4 WI 268.1 Rice 93.6 Peanuts 73.6 MO 380.0 IL 261.3 Beans 84.9 Dry Flue-Cured 71.1 Tobacco Total 6,699.1 Total 6,861.3 Total 8,868.7 Total 8,019.2 U.S. Share 67% U.S. Share 94% U.S. Share 88% Share 90% U.S. Data as of 4/20/2015 Source: RMA Summary of Business 1 tivated wild rice each at 1.75. The macadamia nut losses were in Hawaii and the remaining four crop losses were in California. California's crop insurance (Figure 15) experience during the drought in 2014 reflects both how producers reallocated water to higher value crops and the susceptibility of crops to reductions in irrigation water allocations. Areas where field crops are prevalent, such as the San Joaquin Valley, use irrigation project water and ground water. With drastic cutbacks in water project allocations, water has been shifted to higher value crops, reducing acreage of, and raising claims for, field crops. While the loss ratio for crops like cotton, wheat, rice, hay, pasture and forage was over 2.0, the loss ratios on vegetables, fruits, fruit trees and nuts was well below 1.0. Many of these fruits and vegetables are grown in regions that rely on surface water and pumped ground water rather than allocations from irrigation projects. Figure 16 shows loss ratios by state for the revenue plans, RP and RPHPE, and the yield plan, YP. In most states the loss ratios are comparable, although there are a few notable standouts. In the larger premium states of California, Illinois and North Carolina, YP loss ratios exceeded those for the revenue plans by quite a bit. Alternatively, the revenue plan loss ratio in the larger premium state of Minnesota was far above that for YP. Overall, the loss ratios were 0.93 for RP, 1.37 for RP-HPE and 0.82 for YP. The declines in prices with generally good yields resulted in a loss ratio of 0.41 for the Area Revenue Protection (ARP) Figure 16. State Loss Ratio for 2014 Loss Ratio 3.00 Revenue Plans (RP, RPHPE) 2.50 Yield Plan (YP) 2.00 1.50 1.00 0.50 AL AK AZ AR CA CO CT DE FL GA ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY US 0.00 Data as of 4/20/2015 Failure of Irrigation Supply, 3% Cold Wet, 4% All Other 16% Price, 20% Drought 19% Excess Moisture, 28% Hail, 10% plan, while the Area Revenue Protection with Harvest Price Exclusion (ARP-HPE) experienced a loss ratio of 0.97 and the Area Yield Protection (AYP) plan had a loss ratio of zero. The highest loss ratios among plans were 1.41 for the Aquaculture Dollar Amount of Insurance, 1.37 for RP-HPE and 1.36 for the Actual Revenue History Plan of Insurance. Figure 17 shows the major causes of crop losses for 2014. As is typical, moisture, either too much and/or the lack thereof, accounted for 54 percent of all losses. Excess moisture was the primary cause, being responsible for 27.7 percent of all losses, whereas drought was responsible for only 19 percent of all losses nationally. Price caused one-fifth of all claims reflecting not only the large drop in grain prices in 2014 but also the growth of revenue products and their increased importance in helping to protect risk. Hail, which is discussed in greater detail in a subsequent portion of this article was the cause of 10 percent of losses. [The primary information source for this section was the RMA Summary of Business.] Program and Policy Developments Implementation of the 2014 Farm Bill led the list of program and policy developments in 2014. The new Farm Bill was signed into law on February 7, 2014 and features many new products and changes for crop insurance. The new law met its budget reduction requirements which resulted in reducing projected outlays on the farm safety net (farm programs plus crop insurance). Projected spending was reallocated away from traditional farm programs, which were cut by $14.3 billion over 10 years mainly due to elimination of Direct Payments, and toward crop insurance. Projected CROPINSURANCE TODAY® 17

Crop Insurance Today May 2015

Table of Contents for the Digital Edition of Crop Insurance Today May 2015

“Leg Godt,” or as the Danes would say, “Play Well” (Legos and Crop Insurance)
2014 Year in Review
Florida Hosts Industry Leaders
Four Presented with Industry Awards
Dean Benson Receives Outstanding Service Award
Jeff Meyer Receives NCIS Industry Leadership Award
NCIS Hosts Committee Leaders
Crop Insurance in Action Kiodette and Rich Stroh, Powell, Wyoming
Crop Insurance Today May 2015 - Cover1
Crop Insurance Today May 2015 - Cover2
Crop Insurance Today May 2015 - “Leg Godt,” or as the Danes would say, “Play Well” (Legos and Crop Insurance)
Crop Insurance Today May 2015 - 2
Crop Insurance Today May 2015 - 3
Crop Insurance Today May 2015 - 2014 Year in Review
Crop Insurance Today May 2015 - 5
Crop Insurance Today May 2015 - 6
Crop Insurance Today May 2015 - 7
Crop Insurance Today May 2015 - 8
Crop Insurance Today May 2015 - 9
Crop Insurance Today May 2015 - 10
Crop Insurance Today May 2015 - 11
Crop Insurance Today May 2015 - 12
Crop Insurance Today May 2015 - 13
Crop Insurance Today May 2015 - 14
Crop Insurance Today May 2015 - 15
Crop Insurance Today May 2015 - 16
Crop Insurance Today May 2015 - 17
Crop Insurance Today May 2015 - 18
Crop Insurance Today May 2015 - 19
Crop Insurance Today May 2015 - 20
Crop Insurance Today May 2015 - 21
Crop Insurance Today May 2015 - 22
Crop Insurance Today May 2015 - 23
Crop Insurance Today May 2015 - Florida Hosts Industry Leaders
Crop Insurance Today May 2015 - 25
Crop Insurance Today May 2015 - 26
Crop Insurance Today May 2015 - 27
Crop Insurance Today May 2015 - 28
Crop Insurance Today May 2015 - 29
Crop Insurance Today May 2015 - Four Presented with Industry Awards
Crop Insurance Today May 2015 - 31
Crop Insurance Today May 2015 - 32
Crop Insurance Today May 2015 - Dean Benson Receives Outstanding Service Award
Crop Insurance Today May 2015 - 34
Crop Insurance Today May 2015 - 35
Crop Insurance Today May 2015 - Jeff Meyer Receives NCIS Industry Leadership Award
Crop Insurance Today May 2015 - 37
Crop Insurance Today May 2015 - NCIS Hosts Committee Leaders
Crop Insurance Today May 2015 - 39
Crop Insurance Today May 2015 - 40
Crop Insurance Today May 2015 - 41
Crop Insurance Today May 2015 - 42
Crop Insurance Today May 2015 - Crop Insurance in Action Kiodette and Rich Stroh, Powell, Wyoming
Crop Insurance Today May 2015 - 44
Crop Insurance Today May 2015 - Cover3
Crop Insurance Today May 2015 - Cover4
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