Crop insurance bill mounting for companies, taxpayers

// News | General | Crop insurance bill mounting for companies, taxpayers
Email to a friend Plain text Print version // Font size: Decrease font Enlarge font

Claim payments to American farmers hit by the 2012 drought topped $3.5bn this week, according to the United States’ Federal Crop Insurance Corporation, journalstar.com reported on Saturday.

That includes more than $245m in compensation to Nebraska producers.

“This drought heavily affected spring-planted crops,” said Keith Collins, spokesman for National Crop Insurance Services.

By the time the dust clears, payments to holders of federally subsidized crop insurance policies are likely to go well beyond last year’s record of about $10.8bn nationally, Collins said.

He wasn’t willing to forecast a final number on behalf of his organization.

“But yes, we’ve seen estimates anywhere from $15 billion to $30bn.”

In Nebraska alone, according to federal crop insurance officials, those with a stake in crop production in 2012 bought almost 159,000 policies on about 15.6 million acres of land.

As one gauge of the level of participation, there are 18.17 million production acres in the state overall, including those where wild hay is harvested.

The total premium cost in the state of almost $667m included about $473m in taxpayer subsidies.

Two decades ago, farmers counted much more heavily on emergency disaster programs from federal lawmakers to help them survive weather extremes.

But more recently, higher subsidy rates and growing awareness about improvements in coverage, to include both yield and price protection, have made crop insurance the first line of defense against weather extremes.

In early November, Kansas is at the top of the chart in several crop insurance categories, including $448m in claims paid. One reason is that Kansas is the nation’s biggest producer of winter wheat, which is harvested earlier than spring-planted crops.

That means the pace of claim filing and paying is running ahead of Nebraska and other states farther north.

Veteran crop insurance agent Ruth Gerdes of Auburn , who insures customers in several states, said she is about 50 percent done with claims.

“Harvest was early,” she said, “and a lot of farmers have gotten their paperwork in, and we’ve been paying claims on a daily basis. So it’s flowing well.”

The taxpayer liability for the 2012 drought remains to be seen.

Collins said it would include about $6.9 billion in premium subsidies and about $1.3bn in operating costs.

“And then the question is what underwriting losses the government is going to bear.”

That question looms because the federal Treasury stands behind insurance companies to prevent them from being overwhelmed by claims exposure at times of widespread weather calamity.

Tagged : No tags for this article

Headlines Newsview all

Ini Edo’s Marriage To Phillip Ehiagwina Allegedly Crashes

New reports surfacing online allege that actress Ini Edo’s marriage has crashed. Ini Edo, who got married to her American based business man, Phillip in 2008, ... Full story

Pastor Ayo Oritsejafor, President of the Christian Association of Nigeria opens up on $9.3m arms deal

President of the Christian Association of Nigeria, CAN, Pastor Ayo Oritsejafor, yesterday for the first time spoke on the controversial $9.3m cash allegedly smuggled into ...

Pastor E.Adeboye Says Abortion Is Okay If A Doctor Requests It

The GO of the Redeemed Christian Church of God, (RCCG) Pastor Enoch Adeboye, says abortion is ungodly and unbiblical. He made his position known via ... Full story

Man Attempts to Commit Suicide In Synagogue Church To Prove T.B Joshua Is Not Fake

The spokesman of Emmanuel TV, the media outfit of the Synagogue Church of all Nations, Ken Emeakayi, revealed on Channels TV's Sunrise Daily programme today ... Full story

TB Joshua To Be Prosecuted In Lagos

The Lagos State Government has set up a coroner of inquest for the purpose of investigating the cause of the September 12 Synagogue Church of ...

Nigerian oil tycoon's wife sends warning to Porsha Williams, "The Real Housewives of Atlanta" star

More details have come out on the rumor that "The Real Housewives of Atlanta" star Porsha Williams is dating a married man. On Saturday, September ... Full story

Adokiye Kyrian - Buy my mum a private jet and eat my forbidding fruit

Sexy, Imo State-born singer, Adokiye Kyrian, once created a media storm when she disclosed that she is still 'untouched' s*xually. The talented music act who calls ... Full story

Cardinal Okogie Declares Oritsejafor Is Finished And CAN Is Damaged

In perhaps the most stinging criticism of the leadership of the Christian Association of Nigeria (CAN), by a past leader of the body, the former ...

TB Joshua refutes allegations that he performs fake miracles

The founder of the Synagogue Church of All Nations, Temitope Joshua, has refuted allegations that he performs fake miracles. The pastor has come under severe criticisms ...

Tony Tetuila Criticized For Campaigning With Blonde Hair

Few days ago, music artiste, Tony Tetuila attracted criticism when his campaign poster showed him still flaunting his blonde hair when campaigning for a political ...

Nollywood Actor Kenneth Okonkwo Declares Political Intentions

This is becoming more serious than we thought. Another entertainer has declared intention to delve into politics. Veteran Nollywood actor, Kenneth Okonkwo said declared his intentions ...

Comment on: Crop insurance bill mounting for companies, taxpayers

Rate this article

0

Breaking News

Family Members Contributed To My Crashed Marriage—Juliet Ibrahim

Few months ago, top Ghanaian actress, Juliet Ibrahim, confirmed that she had divorced her husband, which shocked most of her fans. Before then, there were ...

Your Jet Was Registered For Evangelism Not For Moving Money—Falana Tells Oritsejafor

Top human rights activist, Femi Falana has disclosed that the private jet of Christian Association of Nigeria (CAN) president, Ayo Oritsejafor which was recently reported ...

VIDEO – Attempted Suicide At SCOAN? T.B. Joshua Fires Critics

Dramatic footage of a young man dangerously jumping from The Synagogue, Church Of All Nations (SCOAN) gallery was shown to congregants on Sunday 28th September ...

Sheraton Hotel In Billion Naira Lawsuit Mess

One of the top hotels in Nigeria, Sheraton Lagos, in presently in the hot soup of the Copyright Society of Nigeria (COSON) as a copyright ...

Ghanaian Model, Habiba Sinare Denies Sleeping With Davido

Over the weekend, bedroom pictures showing Davido and Ghanaian beauty queen, Habiba Sinare together flooded the internet. The pictures generated some reactions among fans of ...

Omotola Acts Better Than Genevieve—Charles Novia Speaks

On Monday, September 29, 2014, President Goodluck Jonathan decorated some Nigerians, including Nollywood icons, with National Honours. The event was held in Abuja, the Nation’s ...

9ice Flaunts 4th Child From 3rd Mother [Pictures]

Some days ago, it was reported that music act, who is planning to become an elected politician in Oyo State, Abolore Akande, well known as ...

Tony Tetuila Bows To Pressure, Changes Campaign Poster

Few days ago, ace music artiste and former member of the defunct Remedies group, Tony Tetuila was under severe criticism for campaigning with his blonde ...

Yoruba Movie Producers Mind Your Translations

Nollywood has come to stay and waxing stronger as the day goes by to the extent that other countries want to associate with the industry ...

Ebay to split off PayPal business

The online auction site eBay is planning to split off its payments system PayPal into a separate company. It expects to do that in the second ...