According to the National Crop Insurance Services, farmers have already purchased more than 232,000 crop insurance policies to protect their crops as of April 8.
The policies represent more than $19 billion in liabilities and will cover more than 85 million acres. In total, the policies account for $800 million in farmer paid premium. NCIS notes that these numbers will continue to grow into the spring.
To date, Kansas, Texas, California, Oklahoma, Nebraska and Florida lead the way in the number of crop insurance policies purchased.
Last year, farmers took out 1.2 million crop insurance policies, protecting against natural disasters such as the drought. Out of pocket, they spent more than $4.1 billion, and were paid out $16 billion as of late March to recover from drought losses.
Nineteen states have loss ratios exceeding 1.05 – meaning that for every $1 paid in premiums, companies are paying out $1.05 in indemnities.
As of March 29, Illinois had the highest loss ratio at 3.81. States with high loss ratios include Missouri, Kentucky, Nebraska, Iowa, Indiana, Kansas, South Dakota, New Mexico, New Hampshire, New York, Wisconsin, Texas, Colorado, Massachusetts, Tennessee, Wyoming, Michigan and Ohio. Nationally, the loss ratio is 1.44.