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
Prof. Yemi Osinbajo has now taken twitter to correct the assertion that the old man in the photo above making the rounds is related to ... Full story
At least 555 Permanent Voter Cards (PVCs) belonging to dead residents from the 21 Local Government Areas of Ogun State have been discovered by the ... Full story
Pictures of ruthless killer, Mohammed Emwazi, the ISIS executioner popularly known as Jihadi John and currently the most wanted man in the world has surfaced. ... Full story
Rate this article
- Billboard In India Mistakes Morgan Freeman For Nelson Mandela
- 7 And 10-Year-Old Michigan Boys Honored For Turning In A $100 Bill They Found In The Park
- Shaunie O’Neal Refutes Shaq’s Claim That He Didn’t Want Kids In Reality Show
A few days ago we found out the pretty Nollywood actress and single mother had just bought herself a $4million mansion in the Achimota area ... Full story
The fuel crisis across the country worsened, weekend, as most of the petrol stations were shut down leaving motorists stranded. This was in spite of claims ...
The President Goodluck Jonathan administration has been very supportive of the Nigerian entertainment industry. Since his election into office in 2011, President Jonathan made a commitment ...
Many writers have described Queeneth Hilbert as the most beautiful actress in Nigeria. Right or wrong, the model turned screen goddess is unquestionably beautiful with ...
Budding Nollywood actress, Pascaline Alex doesn’t mince words when it comes to our feelings about sex. The sexy actress has said one of the things ...
The police in Ekiti State have arrested a 30-year-old housewife, Mrs. Bukola Olusegun, for setting her husband, 32-year-old Mr. Abimbola Olusegun, ablaze on at their ...
President Goodluck Ebele Jonathan has paid glowing tribute to the productive spiritual leadership which Pastor Enoch Adeboye continues to provide for members of his church ...
One man's meat, they say, could be another's poison. There have been certain cases where wives dump their husbands for possessing little manhood, but the ...