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

Can You Imagine!! Why I Am Unmarried - Dbanj

Dbanj has revealed why he stalled his plans to get married at 30.The singer who has been linked to several beauties revealed to Saturday Beats… “While ... Full story

OMG!! Inspiring Tales Of Life Prisoners Studying For University Degrees (Must Read)

After spending a day with inmates of the Ikoyi and Kirikiri prisons, Lagos, KUNLE FALAYI brings an account of what it is like to be ... Full story

Shocking!! Ex-Vatican Diplomat Accused In Child S3x Abuse Dies Before Trail

The Vatican on Friday announced the death of Jozef Wesolowski, an ex-diplomat who was to be the first high-ranking Vatican official to stand trial for ... Full story

65 Year Old Landlord, Rapes 7 Year Old Girl For Ritual Purposes

In another case that has highlighted the increasing child sexual abuses in Nigeria, a 65-year-old landlord, in Akowonjo area of Lagos, Mr. Ganiyu Sani, has ... Full story

Revealed!! ISIS Most Wanted, Ahmed Al-Assir Was Coming On A Special Invitation To Nigeria

According to a shocking report on Daily Trust, the ISIS leader, Ahmed Al-Assir, who was arrested in Lebanon on his way to Nigeria lately, was ... Full story

Nigerian Woman Let Off £145,000 NHS Bill After Giving Birth To Quintuplets In UK

A Nigerian health tourist who cost the NHS £145,000 having quintuplets has said she never even saw a bill. Bimbo Ayelabola, 37, had to have a ...

Mother And Daughter "Strip" And Sleep With Sugar DaddiesTo Raise £56,000 For Plastic Surgery

Kayla Morris, 20, from Rugby, has worked as a stripper to fund surgery Mother Georgina Clarke, 38, is desperate to look like 'idol' Katie Price   Previous £800-a-week arrangement ... Full story

Sacked Employee Shoots Former Colleagues On Live TV - Video

Disgruntled WDBJ-TV ex-employee Vester Lee Flanagan live tweeted a video of his on-air shooting of reporter Alison Parker and cameraman Adam Ward this morning in ... Full story

Man proposes to his boyfriend in church that prohibits gay marriage and gets a standing ovation from the congregation

Trevor Harper, 36, and Davis Covin, 30,  have been attending the First United Methodist Church of Austin for the past two years Though their congregation has ... Full story

Shocking!! We Hid Cocaine In Arik Flight Meals - Ikechukwu Chibuzor Oliver

The National Drug Law Enforcement Agency on Thursday said it had apprehended another employee of Arik Air, Ikechukwu Chibuzor Oliver, for his alleged involvement in ... Full story

Unbelievable!! 87 Year Old Woman Who Has A 5 Inch Horn Growing Out Of Her Head

Doctors in China were presented with a rare medical condition recently. Liang Xiuzhen from Sichuan, south west China, came to them with what appeared to be ...

Comment on: Crop insurance bill mounting for companies, taxpayers

Rate this article

0

Breaking News

Shocking!! Liverpool 0-3 West Ham

A blistering start by West Ham United at Liverpool culminated in a stunning 3-0 victory on the road for Slaven Bilic’s men. Philipe Coutinho and Mark ... Full story

Heavily Pregnant Mercy Johnson And Hubby Loved Up On Her Birthday (Photos)

A stunning and pregnant Mercy Johnson celebrated her birthday with her husband and kids . She looks amazing! ... Full story

So Touching! Story Of The Childhood Friend Who Made Cristiano Ronaldo Famous

Cristiano Ronaldo has given his old friend and former football teammate, Albert Fantrau a special recognition publicly after recounting how he sacrificed his own football ... Full story

Real Love Comes With A Choice Not A Chance

When all the butterflies have fluttered away and your wedding day becomes a distant memory, you will discover that you’ve married someone who is just ...

Shocking!! She Said I Am Not The Father Of 2 Our Children - James Adedapo

Mr James Adedapo, a retired civil servant has got a nod for his divorce suit against his wife, Oluwatoyin, at the Grade ‘C’ Customary Court ...

Rukky Sanda's Trusted Friend Robbed Her

Nollywood actress, Rukky Sanda, known for her regular flaunting of her wears on social media, has disclosed that she is not happy that she is ...

Secret Of My Shining Skin - Mercy Aigbe

Nollywood actress, Mercy Aigbe, is not just making a mark in acting alone but in fashion, hair and recently cosmetic line which she just added. In ...

Why Is It That Some Of You Feel I'm Bleaching - Vic O

The Nigerian entertainment industry both Nollywood and acting is really buzzing these days as new talents are being discovered all trying to make a name ...

Liz Anjorin: I Am afraid Of Poverty

Nollywood actress, Liz Anjorin, is one blunt actress who does not care what people will have to say about her as she believes she plans ...

OMG!! Aside Women, Men Too Can Be Raped By Women - Omoni Oboli

Royal Arts Academy in conjunction with Nollywood Workshop released a new block buster movie, titled ‘Code of Silence, ’which explores the very important themes of ...