Crop Insurance Premium Rates to be Lowered
Contributed by William Edwards, extension economist
A recent study of historical crop insurance payments concluded that loss payments in the Midwest have been decreasing in recent years, and that a general reduction in premium rates is justified. Changes in both technology and weather trends are responsible for lower loss ratios. The Risk Management Agency (RMA) has announced that 2012 rates will be reduced by an average of 7 percent for corn and 9 percent for soybeans across the country. However, premiums reductions in Iowa will be even greater, averaging 13 percent for corn and 9 percent. Adjustments will vary by county, however. Rates for other crops are being studied, and possible adjustments will be implemented in 2013.
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