Tag: us crop insurance

Crop insurance payouts show modest damage

S.Vagus
Crop Insurance

Drought spurs moderate crop insurance payouts this year The ongoing drought that has gripped much of the U.S. may not be as economically calamitous as had been predicted, according to insurance payouts to farmers in some of the most drought-stricken states. Earlier this year, farmers had expected to lose the vast majority of their produce due to severe drought. While the drought proved to be one of the worst the country has experienced in its history, spurring the federal government to purchase stocks of fish and produce, the economic impact…

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Crop insurance in the US braces for costly impact

Nordstrom
Crop Insurance

Crop insurance payouts could be a costly issue The U.S. has been battered by an extensive and severe drought that has destroyed farmlands throughout much of the country. The drought has been a significant problem for some time and has been at the center of arguments and legislative action concerning the issue of crop insurance. Even before the drought took hold of the country, crop insurance was a hot issue. Now, the economic impact of insurance payouts that many have feared are becoming a reality. Analysts suggest insurance payouts could…

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2012 U.S. Drought Worsens, Claims from Crop Insurance Expected to Exceed $13 billion: AIR

Guest Author
US drought 2012

BOSTON, August 28, 2012 – According to catastrophe modeling firm AIR Worldwide, the drought in the U.S. agricultural heartland continues to deteriorate crops in the Corn Belt with no meaningful precipitation relief in sight. After the hottest July on record, insured losses from the 2012 drought are now expected to surpass losses of other historical droughts.  AIR estimates that losses resulting from farmer claims for the crop insurance industry may exceed USD 13 billion with potential losses as high as USD 20 billion. Although the 2012 growing season began on…

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Crop insurance helps farmers and insurers alike

Marc
Crop Insurance

These policies, subsidized by the federal government, help protect against losses. When plants fail to grow or are damaged by poor or severe weather, or even when prices plummet, the government is footing the majority of the bill through a crop insurance program for farmers. This coverage helps both the growers and the insurers who write the policies. It functions by providing subsidies to the farmers and the insurers in the case that losses from crops should grow too large. These subsidies are partially paid for by taxpayer dollars. The…

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Lawmakers clash with Obama administration over the matter of crop insurance

Federal legislators representing various agriculture committees in Congress have rejected the cuts to crop insurance President Obama unveiled in his budget plan this week. The plan looks to cut $8 billion in funding for crop insurance throughout the country. Legislators claim that this would be a major blow to many farmers, especially those in areas that are prone to seeing natural disasters. The Obama administration is keen to make cuts to crop insurance because it claims that some farmers are abusing the system, as they will be paid for their…

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Importance of crop insurance highlighted at the 26th Annual Corn Growers Association meeting

Nordstrom

As farmers from all over the country convened over the weekend to attend the 26th Annual Corn Growers Association in Sioux Falls, South Dakota, crop insurance was on everyone’s mind. With 2011 being recognized as a record breaking year in terms of natural disasters, and the persistent problems spawned from a turbulent climate, farmers throughout the country have been facing significant difficulties with keeping their crops alive. As crops are lost, farmers lose their ability to make a living. Most farmers receive money from the government, but this money is…

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Understanding the insurance overlaps among crop, ACRE, and SURE coverage

A report has been released by economists from the United States Department of Agriculture (USDA) on the topic of overlaps by the various farm safety net programs, investigating the possibility for fraud by those crossovers, but determined that there was very little evidence of its occurrence. However, the hope is that the new Farm Bill will divide the programs in a way that will minimize the potential of overlaps in the future. One of the best examples of farm program complexity is ACRE. The low participation in the program is…

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