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.