2008 crop insurance indemnity payments near $6.5 billion

Because of droughts and flooding in parts of the country along with substantial price declines for corn and soybeans, indemnity payments on crop losses during the 2008 growing season reached nearly $6.5 billion in mid February with more claims yet to be processed. “All losses haven’t been paid yet either,” said Bob Parkerson, president of National Crop Insurance Services (NCIS), the nonprofit industry trade association in Kansas City. “There are still many losses yet to be finalized by the companies, and GRIP payments won’t be made until RMA approves the county yields for those policies, which doesn’t usually happen until April.” The private insurance industry has had thousands of adjusters working these losses since crops were harvested, and won’t quit until the last loss is processed.