The National Crop Insurance Services (NCIS) trade group says a record $8.6 billion in crop insurance indemnity payments has been distributed to U.S. farmers for crop losses in 2008, and a lot of that money went to farmers in the Midwest. The total payment amount is expected to rise as more losses are finalized.
The NCIS, a nonprofit industry trade association, says the payments were for losses that resulted from drought and flooding, along with substantial price declines for some major crops.
“All losses haven’t been paid yet either,” said Bob Parkerson, president of NCIS, which is based in Kansas City. “There are still many losses yet to be finalized by the companies, and GRIP payments won’t be made until RMA [Risk Management Agency] approves the county yields for those policies.”
Most of the insurance payments come from the private insurance companies that sell and service the Federal crop insurance program. For their part, the private insurance companies have contributed substantially from the funds they set aside as loss reserves, the NCIS says.
Of the Midwestern states receiving crop insurance payouts, Iowa led the way with $1.1 billion. Payments to other states in the Midwest include: $842 million, North Dakota; $691 million, Minnesota; $569 million, Illinois; $524 million, Indiana; $522 million, Ohio; $414 million, Nebraska; $411 million, Kansas; and $400 million, South Dakota.
Texas was among the non-Midwestern states receiving large crop insurance payments for 2008 losses. So far it has recieved $766 million in crop insurance indemnity payments.
Topics Profit Loss Agribusiness
Was this article valuable?
Here are more articles you may enjoy.
Florida Appeals Court Reverses $200M Jury Verdict in Maya Kowalski Case 
Suspects in Louvre Heist in Custody After Week-Long Manhunt 
AWS Outage a ‘Moderate Incident,’ Another Near Miss for Insurance Industry 
Reinsurers Hold Bulk of Jamaica’s Property Exposures From Hurricane Melissa: Reports From This Issue
