Farm Progress

Crop insurance will cover claims

62 percent of the lower 48 states are experiencing moderate to exceptional drought.Crop insurance is helping farmers pick up the pieces.

Ron Smith 1, Senior Content Director

August 21, 2012

1 Min Read

Farmers across the country are suffering under one of the worst droughts most can remember. According to the August 14 U.S. Drought Monitor 62 percent of the lower 48 states are experiencing moderate to exceptional drought.

Crop production estimates, especially for corn, are off considerably from the past few years and supplies are expected to be tight.

Crop insurance is helping farmers pick up the pieces, according to the National Crop Insurance Services. The organization’s weekly update reports that so far in 2012:

  • Farmers have invested $3.9 billion to purchase more than 1.1 million crop insurance policies. 

  • The policies provide $110 billion in liability protection.

  • 15,000 private crop insurance agents and 5,000 loss adjusters are already helping farmers with claims.

  • The crop insurance industry has already paid out $948 million in indemnity checks.

Some areas are experiencing the second or third drought year in a row, but crop insurance industry observers say they have both the financial and human resources to service the claims.

About the Author(s)

Ron Smith 1

Senior Content Director, Farm Press/Farm Progress

Ron Smith has spent more than 40 years covering Sunbelt agriculture. Ron began his career in agricultural journalism as an Experiment Station and Extension editor at Clemson University, where he earned a Masters Degree in English in 1975. He served as associate editor for Southeast Farm Press from 1978 through 1989. In 1990, Smith helped launch Southern Turf Management Magazine and served as editor. He also helped launch two other regional Turf and Landscape publications and launched and edited Florida Grove and Vegetable Management for the Farm Press Group. Within two years of launch, the turf magazines were well-respected, award-winning publications. Ron has received numerous awards for writing and photography in both agriculture and landscape journalism. He is past president of The Turf and Ornamental Communicators Association and was chosen as the first media representative to the University of Georgia College of Agriculture Advisory Board. He was named Communicator of the Year for the Metropolitan Atlanta Agricultural Communicators Association. More recently, he was awarded the Norman Borlaug Lifetime Achievement Award by the Texas Plant Protection Association. Smith also worked in public relations, specializing in media relations for agricultural companies. Ron lives with his wife Pat in Johnson City, Tenn. They have two grown children, Stacey and Nick, and three grandsons, Aaron, Hunter and Walker.

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