As a result of a relatively good crop production year in 2014, the federal crop insurance program payments calculated so far by the Risk Management Agency of the U.S. Department of Agriculture are 26 percent lower than the total for 2013.
The latest report indicates a total of $8.8 billion in payments for either yield or price loss coverage in 2014 compared to $12 billion in 2013.
Of the $8.8 billion, the payments for major crops have been $3.7 billion for corn, $1.6 billion for wheat and $1.2 billion for soybeans. Farmers could purchase crop insurance on 128 different crops.
Among the states, Wisconsin does not rank in the top 10 for payments on any of the major crops, while the payments in Illinois are relatively low given the state's high standing in production totals for corn and soybeans.
Of the $3.7 billion in crop insurance payments on corn, $1.1 billion went to farmers in Iowa and $1 billion to growers in Minnesota. Totals for other states for 2014 are $339 million in Nebraska, $166 million in North Dakota and $163 million in Illinois.
Growers in Kansas claimed $400 million (25 percent) of the $1.6 billion in crop insurance payments for wheat. North Dakota followed at $147 million. Payments in other states included $36 million in Nebraska, $27 million in Illinois, and $21 million in Missouri.
On the $1.2 billion in payments for soybeans, Minnesota led with $282 million, while Iowa's total was $252 million. Totals for other states included $104 million in North Dakota, $93 million in Nebraska, $48 million in Missouri and $43 million in Illinois.
The indemnities paid come from a combination of crop insurance premiums paid by farmers and a federal government subsidy. Commenting Policy
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Source - http://www.wisfarmer.com
