Crop Insurance Today - 17

Table 6 Top 10 Premiums & Indemnities by State and Crop, 20161
	

STATE	PREMIUMS	STATE	INDEMNITIES	

		

CROP	PREMIUMS	
CROP	INDEMNITIES

MIL.$		MIL.$		

MIL.$		
MIL.$

	
TX	889.1	TX	477.0	
Corn	3,532.5	Corn	920.0
	
ND	853.3	ND	285.1	 Soybeans	1,849.3	 Wheat	
495.4
	
SD	675.2	CA	279.8	
Wheat	1,109.5	
Soybeans	381.7
	
IL	626.5	NC	249.9	
Cotton	651.1	
Cotton	299.7
	
KS	602.9	SD	163.0	
PRF	280.6	
PRF	178.4
	
IA	596.7	GA	141.0	 Grain Sorghum	189.6	
Flue Cured Tobacco	126.9
	
MN	558.2	AR	132.6	
Almonds	135.5	Rice	97.7
	
NE	508.1	KY	120.5	
Whole Farm Revenue	120.0	
Apples	95.3
	
CA	481.2	NE	116.9	
Apples	114.7	
Burley Tobacco	84.8
	
MO	356.7	MN	116.3	
Rice	86.7	
Peanuts	83.9
	
Total	6,148.1	 Total	2,082.2	
Total	
8,069.4	
Total	2,763.9
	 U.S. Share	66%	 U.S. Share	58%	
U.S. Share	87%	
U.S. Share	78%
1
Data as of April 15, 2017
Source: RMA Summary of Business

were essentially unchanged for the year, while the
acres insured declined by nearly three percent.
Texas contributed the largest premium of
$889.1 million and recovered the largest indemnity payment of $477 million. In total, Texas
had an excellent loss ratio of 54 percent (Table
6). North Dakota was second in both premium and indemnities, with an overall loss ratio
of 33 percent. California, which ranked first
in terms of indemnities received in 2015, fell
to third on this list with indemnities of $279.8
million, less than half the amount received in
the prior year. Excess moisture was the most
significant cause of loss in all three states. Other
major contributors were hail and heat in Texas,
hail in North Dakota, and failure of irrigation

supply in California. North Carolina and South
Dakota rounded out the top five states in total
indemnities. Among crops, corn led with $920
million in indemnities, as compared to $1.6 billion in 2015. Wheat, soybeans, cotton, and the
Pasture/Rangeland/Forage program followed
corn in total payments.
The map in Figure 14 shows the state loss ratios and premium volumes for 2016. Colors are
used to identify states with similar loss ratios,
and shading is used to identify states with similar
premium volumes. Rhode Island had the highest
loss ratio of 2.84, but on a premium volume of less
than $100,000. New Hampshire had the second
highest loss ratio at 2.12 on a premium volume of
roughly $500,000, with the top five rounded out

Figure 15 State Loss Ratios for 2016

Table 7 California Drought
Crop Insurance
Experience
State Insured Crops & Area, 2016
	
	
CROPS
	

Acres,	Premium	 Loss
Mil.	
Mil. $	 Ratio

	 Fruits/Trees/Nuts	2.03	 372	 0.51
	
Vegetables	 0.33	21	0.72
	 Field Crops/Other	3.91	 88	 0.86
	
Total	
6.27	481	0.58
Data as of April 15, 2017

by Nevada at 1.44, North Carolina at 1.41, identical to its 2015 loss ratio, and New York at 1.31.
Only seven states had loss ratios greater than 1.0.
Total indemnities for these states added up to
$556 million, 16 percent of the total payout. The
five lowest loss ratio states were, in order, Iowa at
0.09, Wisconsin at 0.11, Kansas at 0.13, Illinois at
0.14 and Alaska at 0.16. Of the 25 crops with the
largest premium volume, the highest loss ratios
were for flue cured tobacco, 2.26; peanuts, 1.25;
cherries, 1.22; rice, 1.13; and dry beans, 1.00.
California has finally rebounded from its
poor experience during the extended drought of
recent years. Acres, premium, and loss ratios for
the three major crop segments are detailed in Table 7. Loss ratios for all three crop segments were
below 1.00 in 2016, while the overall loss ratio
of 0.58 was well below the statewide loss ratio of
1.21 reported for 2015.
Figure 15 shows loss ratios by state for the revenue plans (RP and RP-HPE combined), and the
yield plan (YP). In most states the loss ratios are
comparable, consistent with expectations due to
the relatively stable crop prices during the year.
CROPINSURANCE TODAY®

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