As the claims come in from the 2012 drought, farmers and ranchers across the country are receiving indemnity payments for the losses they have incurred. As of Feb.18, 2013, more than $14.7 billion has been sent to farmers.
In 2012, farmers invested more than $4.1 billion to purchase more than 1.2 million crop insurance policies, protecting 128 different crops.
Crop insurance policies protect more than 281 million acres of planted land. Farmers have spent $28.6 billion out of their pockets to purchase the protection of crop insurance in the past decade.
Currently, Illinois has the highest loss ratio in the country at 3.23. Seventeen states have loss ratios exceeding 1.05 – meaning that for every $1 paid in premiums, companies are paying out $1.05 in indemnities. These states include: Illinois, Missouri, Kentucky, Nebraska, Iowa, Indiana, Kansas, South Dakota, New Mexico, New Hampshire, New York, Wisconsin, Texas, Colorado, Massachusetts, Tennessee and Wyoming.
Nationally, the loss ratio is 1.33.
Source: National Crop Insurance Services