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

Pastor Chris Oyakhilome's Wife Files For Divorce On The Grounds Of Adultery!

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

National Universities Commission Publishes List Of Illegal Universities In Nigeria

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

Nigerian immigrants seeking asylum under harsh conditions in Pretoria, South Africa - Video Video

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

Nollywood Actress Kate Henshaw Going Into Politics - Video

Kate Henshaw has told Reporters that she will be taking a break from acting for now to pursue her political career. She also says she ... Full story

Nigeria’s Health Minister Onyebuchi Chukwu Confirms Ebola Death In Port Harcourt

Nigeria has confirmed its first Ebola death outside Lagos – a doctor in the oil hub of Port Harcourt. Nigeria’s Health minister Onyebuchi Chukwu said the ...

Charly Boy Gives Lessons On Marriage

Son of late Justice Chukwudifu Oputa, Charles, better addressed as Charly Boy, says marriage is not all about finding someone who matches up with on ... Full story

Samuel Sadela, Nigeria’s Oldest Pastor, Dies At Age 114

The Founder and President of the Gospel Apostolic Church, Pa Samuel Sadela, has passed on. He was aged 114. Although a senior pastor in the church reportedly ...

Nigerian soldiers that fled to Cameroon following a fierce battle with Boko Haram militants, return

Some of the Nigerian soldiers that fled to Cameroon following a fierce battle with Boko Haram militants in locations around Borno and Adamawa states have ...

Pastor Chris Oyakhilome Says Many Pastors Will Go To Hell

Founder and head pastor of Believers Love World, popularly known as Christ Embassy, Chris Oyakhilome left members of his church shocked with his revelation while ... Full story

Ebola scare: Passengers quarantined at Scottish Airport after 10-year-old Nigerian passenger became ill

 Shocked airline passengers were recovering following a terrifying ebola scare which saw them quarantined for 90 minutes at a Scottish Airport yesterday, Mailonline reported.More than ... Full story

Fulani clash with Eggon youths in Nasarawa State leaves 17 dead

No fewer than 17 people were killed on Sunday night during a clash between suspected Eggon youths and their Fulani counterparts in  Alingani Fadaman Bauna, ... Full story

Comment on: Crop insurance bill mounting for companies, taxpayers

Rate this article

0

Featured author

Reinetta Zachary

Breaking News

Chris Oyakhilome's Wife, Anita Files For Divorce On Adultery Grounds

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, ...

"You Do Not Have To Have University Education To Be Able To Make It" Folorunsho Alakija

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

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 ...

"The Devil Is Taking It Personal To Attack Marriages" --Mercy Aigbe

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 ...

You Cannot Return Me To My Parents- Tiwa Savage Tells Husband

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 ...

MISTRESS TEARS MOVIE DIRECTOR’S HOME APART

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. ...

FASHION POLICE REPORT: I Strongly Disapprove of This Look Tiwa

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 ...

I Don’t Show off My Wealth Because I Need My Fans Love……….Rapper, Reminisce

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 ...

FG pays N25bn GENCOs’ gas debts to boost electricity supply

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 ...

BREAKING NEWS: Nasir El-Rufai Mocks Boko Haram Revealed Sponsors: SHERIFF AND IHEJIRIKA

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 ...