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Crop insurance indemnities nearly $17 billion in 2012

Article on Crop Insurance results for the 2012 crop year, $17 Billion is a pretty good chunk of change, not exactly pennies and quarters. Article is below:



Crop insurance indemnities nearly $17 billion in 2012


Crop insurance indemnities have risen to a record $17 billion for 2012 crop year, the U.S. Agriculture Department said in its latest report issued on Monday.

The figure, which was up more than $700 million from the prior week, pushed the total for 2012 to $16.99 billion. The number is higher than 2011 when a series of natural disasters ranging from a freeze in Florida to drought in Texas prompted insurance companies to pay out a record $10.8 billion to farmers, short of the $12 billion they collected in premiums.

The 2012 drought spread beyond the Midwest to affect more than 60 percent of the contiguous United States, making it the worst since the Dust Bowl in the 1930s. A sharp drop in crop yields pushed corn and soybean prices to record highs during the summer and costs to feed U.S. livestock soared, forcing ranchers to send their herds to slaughter rather than pay the higher feed costs.

Crop insurance traces its roots back to the 1930s when the program was put in place by the federal government in response to the Great Depression that had devastated much of the United States.