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Program Statistics

Summary of Premiums and Losses


Crop
year
1/
As of Sep 30, 2013

Premiums 2/

Losses

Loss Ratio
Billion dollars Percent
2008 9.85 8.68 88
2009 8.95 5.20 58
2010 7.59 4.24 56
2011 11.96 10.84 91
2012 11.11 17.41 157
2013 Estimated 11.80 9.00 76

1/ Crop year is year commodity is harvested.
2/ Premium listed contains both the producer paid premium and the federally subsidized portion of the premium.

Crop insurance premium rates are calculated using generally accepted actuarial methods to attain a break-even loss ratio of 100 percent. Individual years fluctuate depending on many variables, including weather patterns and commodity prices. The goal is for the long-term loss ratio average to be at 100 percent.



Crop Year Statistics as of Sep 30, 2013

Category 2008 2009 2010 2011 2012 2013 Est.


Policies
Number (Millions)
1.14 1.16 1.12 1.15 1.17 1.21


Farmer paid premium
Billion dollars
4.17 3.56 2.88 4.51 4.13 4.51
Premium subsidies 5.68 5.39 4.71 7.45 6.98 7.29
Total premium 9.85 8.95 7.59 11.96 11.11 11.80
Indemnities 8.68 5.20 4.24 10.84 17.41 9.00
Insurance protection 89.56 78.96 78.06 114.18 117.13 122.61


Loss ratio
Percent
88 58 56 91 157 76

Increase in premium and indemnities during the last two fiscal years is due to higher prices for several major insured commodities. Revenue price elections have increased significantly for corn, soybeans, sorghum, wheat, rice, and barley. A secondary reason for the increase in premiums is that price volatility increases the premium rates charged for revenue coverage.

Note: For weekly updates, please see the Summary of Business.

Contact Information

For more information, please contact Michael Drewel.