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.
Headlines Newsview all
Nothing hides forever. May God forgive me, but I have said it here before that Pastor should come open and tell us if marrying More ... Full story
The National Universities Commission (NUC) wishes to announce to the general public, especially parents and prospective undergraduates, that the under-listed “Degree Mills” have not been ... Full story
Here are some photos and a video shot that captures the plight of Nigerian immigrants seeking asylum under harsh conditions in Pretoria, South Africa. According to ... Full story
Rate this article
News reaching Nigeriafilms.com from The Cable has it that the dissolution of the marriage between Christ Embassy Church founder, Pastor Chris Oyakhilome, and his wife, ...
No one would immediately believe that Mrs Folorunsho Alakija one of Africa's richest women and chairman of Famfa Oil never had a University education.The mother ...
Davido Lied! He Can’t Afford The Acquisition And Maintenance Of A Private Jet, See Why- Pas Chikero Nigerian Entertainers love to create hype with things ...
Nollywood actress Mercy Aigbe is giving advice to ladies who are not yet married, she said there is no need to rush into marriage and ...
With the whole break up saga that goes around celebrity marriages these days, singer, Tiwa Savage-Balogun has intended to stay married no matter what.The singer ...
Another scandal is currently raging in Nollywood. And this time, it involves an elderly movie director who cannot put his two legs in one place. ...
Tiwa Savage in a denim mini dress from the Agbani Darego collection Tiwa Savage (popularly known as the first lady of Mavin Records), stepped out in ...
Yoruba rapper, Remilekun Shafaru popularly known as Reminisce, says he almost quit music four months before his fortune improved.According to the indigenous rapper, he actually ...
President Goodluck Jonathan, yesterday, said the Federal Government has paid off power generation companies,’ GENCOs, N25 billion debts owed gas companies for gas supplies in ...
In a recent interview with Arise TV, Australian hostage negotiator, Stephen Davis, revealed some Nigerians whom he claimed were allegedly behind the sponsoring of the ...