2021 Crop Insurance Update Securing America’S Farmers 2021 Crop Insurance Update Table of Contents
Total Page:16
File Type:pdf, Size:1020Kb
Rain and Hail Insurance Society 2021 Crop Insurance Update Securing America’s Farmers 2021 Crop Insurance Update Table of Contents Letter from Rain and Hail Insurance Society ����������������������������������������������������������������������������������������������1 About Rain and Hail ����������������������������������������������������������������������������������������������������������������������������������2 Crop Insurance: Flexible, Affordable, Available, Predictable �����������������������������������������������������������������������3 Percent of Eligible Acres Insured 2019 & 1994 �������������������������������������������������������������������������������������������4 U�S� Crop Insurance Snapshot ������������������������������������������������������������������������������������������������������������������4 2020 Participation Data �����������������������������������������������������������������������������������������������������������������������������5 2020 MPCI Insurance Plans by Policies Sold ���������������������������������������������������������������������������������������������6 Why U�S� Crops Fail - 2020 �����������������������������������������������������������������������������������������������������������������������6 Fundamentals of Federal Crop Insurance ���������������������������������������������������������������������������������������������������7 Plans of Insurance Defined ���������������������������������������������������������������������������������������������������������������������� 10 Policy Briefs �������������������������������������������������������������������������������������������������������������������������������������������� 13 2020 Crop Insurance Data by State ��������������������������������������������������������������������������������������������������������� 55 2020 Crop Insurance Summary by Congressional District ������������������������������������������������������������������������� 56 2020 Crop Insurance Industry Summary by State ������������������������������������������������������������������������������������� 63 2020 Crop Insurance Industry Summary by Crop������������������������������������������������������������������������������������ 100 2020 Rainfall Index Summary ���������������������������������������������������������������������������������������������������������������� 139 Livestock Insurance Industry Summary �������������������������������������������������������������������������������������������������� 140 Provided by Rain and Hail Rain and Hail Insurance Society 9200 Northpark Drive, Suite 300 • Johnston, IA 50131 Phone: 515.559.1000 • Fax: 515.559.1001 May 2021 To: Friends and Supporters of Crop Insurance Re: Crop Insurance Program Success Farmers never know what the growing season will bring to their crops. Last year was no different. Again, many farmers were unable to even plant due to wet conditions. Those that were able to plant faced huge production loss from excess moisture, drought, hurricanes, wind and other natural disasters. Without crop insurance, there is no guarantee these farmers would even be planting again this year. This crop year will be no different. We can’t predict what will come to farmers in different parts of the country, but we do know the most effective way to protect this year’s crops: crop insurance. Many of us experienced empty grocery store shelves last year. Farmers are the ones that keep those shelves full, and crop insurance is the only effective way to ensure they are able to provide for the rest of the country. We must continue to advocate for crop insurance as it will continue to be threatened in the future. Because the federal government shares in the risk and premium costs, crop insurance premiums are lower and affordable, ensuring the continuation of the best safety net that works for America’s farmers. Farmers trust more and more in the safety net as there has been a 63 million increase in insured acres from 2018 to 2020. They rely on crop insurance in an industry that has so many elements that can be unpredictable from year to year, season to season. Recent history has shown that crop insurance is vital and works for the vast majority of America’s farmers. Federal support, the right coverage and efficient claims service from the crop insurance industry provide American farmers and their local communities with the stability they need. The Limited Resource Farmer program allows the socially disadvantaged to continue farming, no matter what financial limitations affect them. The Beginning Farmer Rancher program provides specific assistance to those new to the agriculture industry, encouraging crop insurance participation by new producers for future generations. The basic fact remains the same: America’s famers need to protect their livelihood. Private insurance providers’ knowledge and reliable service, in addition to the federal support of crop insurance, prepare farmers to survive the worst. The crop insurance industry is proud of the program’s success. Crop insurance is helping ensure a secure food supply and a stable rural economy. We ask for your continued support of crop insurance. The program is unmatched in delivering meaningful risk management tools to America’s farmers. The Rain and Hail Insurance Society is pleased to provide you with this Crop Insurance Update. The Society and its members thank you for your support of crop insurance and hope you find this update to be a useful reference and information source for crop insurance issues. Sincerely, Rain and Hail Insurance Society Rain and Hail Agricultural Insurance Serving America's Farmers Since 1919 A Chubb Company The Rain and Hail Difference Full-Range of Products and Services The Rain and Hail difference is what sets us apart from other agricultural Rain and Hail offers agricultural insurance products needed to properly insurance providers. Our commitment to always provide the best service protect farming operations, including: possible to the American farmer and rural America, and our belief in a • Multiple Peril strong safety net for America’s agricultural communities, make us a leader • Crop-Hail in the industry. • Specialty Crop Lines Unmatched Claims Service Response in a loss situation brings out the true character of the company. Localized Network Time and time again, Rain and Hail is there for our customers when they Rain and Hail’s localized network of fieldstaff and independent adjusters allows need us, by providing: us to respond immediately to the needs of our agents and policyholders. The Rain and Hail field team prides itself on comprehensive agent training, • Tools to quickly and easily submit claims support, claims supervision and the ability to address the requests of • Prompt and accurate claims adjustment agents and policyholders in a timely manner. Our fieldstaff and adjusters • Expedited claim payments are strategically located so there is always a Rain and Hail representative within serviceable distance. This localized support allows us to provide farmers with personalized service and immediate, individualized solutions required to gain effective results. This institution is an equal opportunity provider and employer. Spokane Plymouth Johnston Omaha Peoria Fresno Amarillo Raleigh Grayson Legend 2 Provided by Rain and Hail Crop Insurance: Flexible, Affordable, Available, Predictable While crop insurance is not a new concept, it is more important than ever to thousands of farmers across the United States. A number of factors combine to make crop insurance the cornerstone of many farmers’ financial and risk management plans: the ability to tailor coverage to their own operation at a meaningful level and affordable price, the comfort of working with a local and trusted insurance professional and the knowledge that crop coverage is in place and can be counted on for financial planning purposes. Throughout time, these crop insurance benefits have accounted for the success and acceptance of the program, and will continue to do so well into the future. Flexible Farmers are able to tailor their coverage to fit the needs of their specific operation. They have a choice of coverage levels that range from 50% to 85%. Numerous coverage plans are available for a variety of crops, including MPCI yield guarantee protection, revenue products that provide yield loss and price protection, and area coverage programs, which provide broad-based, simple yield or revenue protection on a county basis. The variety of coverage and product levels that are available provide growers with the opportunity to obtain the coverage that best fits their own operational and risk management needs. Affordable Because the government shares in the risk and administrative premium costs, growers are able to purchase crop insurance at more affordable premium prices. This cost-sharing arrangement makes it possible for many growers to secure better coverage than they otherwise could afford without government assistance. The result is affordable protection for growers and manageable costs for taxpayers. Coverage Level 50% 55% 60% 65% 70% 75% 80% 85% Premium Assistance Basic Unit 67% 64% 64% 59% 59% 55% 48% 38% Optional Unit 67% 64% 64% 59% 59% 55% 48% 38% Enterprise Unit 80% 80% 80% 80% 80% 77% 68% 53% Whole Farm Unit 80% 80% 80% 80% 80% 80% 71% 56% Enterprise Unit by Irrigation Practice 80% 80% 80% 80% 80% 77% 68% 53% Enterprise Unit by Cropping Practice 80% 80% 80% 80% 80% 77% 68% 53% Available Private sector delivery provides competitive,