According to some estimates, crop insurance may pay out a record 25 billion dollars in claims this year.
That would be more than double the record high of ten-point-eight billion dollars in 2011.
More than 80 percent of U.S. corn acres planted in 2012 were covered by crop insurance. According to Iowa Farm Bureau director of commodity services Ed Kordick, about 90 percent of Iowa’s farmers have crop insurance—and 90 percent of those buy a revenue protection product.
“I’m a very strong advocate of protecting both crop yield and price—and that’s what revenue protection crop insurance does. It takes care of both of those risks,” Kordick says, “and in 2012 we had significant yield risk, which will lead to some pretty big indemnities—and crop insurance will do what it’s supposed to do—which is keep people on farms.”
According to Doane Agricultural Services, claims—nationwide—will be made on more than half of the one-point-two million crop insurance policies written for this year’s crops.