Crop Insurance Today Second Quarter 2022 - 17

Table 3
able
Federal Crop Insurance Program Performance, Gross Basis1
al
Year
Crop
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Policies with
Premium
Thousands
1,174
1,224
1,207
1,205
1,160
1,125
1,108
1,106
1,112
1,167
1 Data as of April 21, 2022
Source: RMA Summary of Business, NASS Quick Stats
2,529
2,584
2,539
2,547
2,442
2,370
2,330
2,355
2,433
2,632
117,160
123,811
109,904
102,539
100,623
106,064
110,163
109,876
113,944
136,628
Units with
Premium
Liability
Premium
11,117
11,808
10,073
9,769
9,329
10,071
9,896
10,129
10,065
13,714
Farmer-Paid
Premium
4,138
4,511
3,858
3,679
3,462
3,716
3,630
3,758
3,746
5,109
Million Dollars
Indemnity
17,451
12,085
9,136
6,316
3,913
5,432
7,323
10,605
8,681
9,022
Gross
Underwriting Gain
-6,334
-227
938
3,452
5,416
4,637
2,573
-476
1,384
4,692
Insured
Acres
Million
283
283
296
295
296
290
312
335
379
398
445
1.57
1.02
0.91
0.65
0.42
0.54
0.74
1.05
0.86
0.66
Loss
Ratio
ume, Texas, North Dakota, Iowa, Illinois, and
Kansas were the top-ranking states for 2021.
With respect to indemnities, North Dakota,
Texas, and Iowa were the top three ranking
states. A surprise shiſt in the premium volume
for top crops had cotton replacing wheat for the
number three spot behind corn and soybeans
in 2021. And respectively, corn, wheat, and soybean
indemnities were $1.8 billion, $1.6 billion,
and $1.4 billion in 2021.
The U.S. Loss Ratio map in Figure 9 reveals
the remarkable underwriting results in several
of the major corn and soybean states. Specifically,
the states of Iowa, Illinois, Indiana, Kansas,
Missouri, Nebraska, Ohio, and Wisconsin all
experienced loss ratios under 50 percent for the
FCI program.
Table 4
Table
Top 10 Premiums and Indemities Ranked by State and Crop for 2021
RANK BY STATE
Premium
Rank
1
2
3
4
5
6
7
8
9
10
U.S. Total
Top 10 Share of U.S.
1Data as of April 21, 2022.
Source: RMA Summary of Business
CROPINSURANCE TODAY®
17
State
Texas
North Dakota
Iowa
Illinois
Kansas
South Dakota
Minnesota
Nebraska
Indiana
California
Top 10 Sub-Total
All Other
MIL.$
State
1,390.5 North Dakota
1,089.5
1,052.9
Texas
978.6
875.2
841.3
527.2
507.6
8,846.5
4,867.8
13,714.2
65%
South Dakota
Montana
Minnesota
California
835.7 Washington
748.0
Kansas
Missouri
Arkansas
Indemnity
MIL.$
1,695.6
1,233.0
676.8
549.4
515.4
514.5
417.3
274.3
234.9
218.5
6,329.6
2,692.3
9,021.9
70%
Crop
Corn
Soybeans
Cotton
Wheat
PRF
Grain Sorghum
Annual Forage
Rice
Whole Farm
Apples
Premium
MIL.$
4,988.6
3,174.3
1,115.9
1,051.5
859.9
269.1
150.9
140.4
124.0
123.6
11,998.2
1,716.1
13,714.2
87%
RANK BY CROP
Indemnity
Crop
Corn
Wheat
Soybeans
PRF
Cotton
Rice
Annual Forage
Dry Peas
Dry Beans
Grain Sorghum
MIL.$
1,792.1
1,647.0
1,375.6
977.3
624.0
283.6
224.3
184.3
151.1
138.3
7,397.6
1,624.3
9,021.9
82%
Contrast the experience of the Midwest
with that of the Northwest region encompassing
Washington, Idaho, and Montana, along
with Massachusetts, that sustained loss ratios
in excess of 200 percent. The primary cause of
loss in these states was drought. The Southwest
and Delta states, and California, North Dakota,
Rhode Island, and Connecticut also experienced
loss ratios in excess of 100 percent primarily
due to drought or excess moisture and
hurricanes.
Revenue Products
The projected base prices used to establish
the value of a crop and the insured liability
under the Revenue Protection and Yield
Protection forms of insurance policies are
shown in Table 5 for crop years 2015 through
2022. Projected base prices are the average of
futures prices during the discovery month, i.e.,
the month preceding the sales closing date for
a policy.
The projected base prices rebounded for all
commodities in 2021 aſter a decline in 2020
due to the overall downturn in the farm economy
and trade implications with China.
Commodity prices were up slightly across
the board for all commodities in 2021, including
a 29 percent increase in the soybean base
price and 17 percent increase in the spring
wheat base price.
Implied volatility factors (IV) are derived
from futures market information and serve as
the measure of risk for expected harvest prices.
Crop Insurance Today Second Quarter 2022

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