While 2012 crop insurance indemnity payments have hit a new record high, National Crop Insurance Services says the taxpayer-funded portion of those losses will be much lower than expected last summer.
That is good news for the future of the program and good news for farmers who are closing in on the March 15 deadline for signing up for crop insurance on most spring planted crops, NCIS says. March 15 is also the deadline to make any changes to existing policies.
The 2012 indemnities hit $14.7 billion, as of Feb. 25, and will climb higher as claims are finalized in the next few weeks.
There will be some government loss in the program for 2012 but NCIS it will be mitigated by the $4.1 billion in farmer paid premiums as well as losses absorbed by the participating insurance companies that deliver and service the crop insurance program.
The Congressional Budget Office foresees a sharp decline in indemnities in 2013 and has lowered its projections for total federal outlays for crop insurance by nearly $8 billion over the next 10 years.