FOR IMMEDIATE RELEASE
May 8, 2009
OVERLAND PARK, KAN…The crop insurance industry has paid almost $687 million to the farmers in Minnesota for losses due to crop loss or decrease in commodity prices for 2008, according to the most recent summary of business data released by the Risk Management Agency.
“The amount of indemnities paid may still continue to rise,” said Robert Parkerson, president of National Crop Insurance Services, a trade association for the crop insurance industry. “Not all losses have been paid yet because the Risk Management Agency just recently released the prices for the GRIP policies, and many still need to be finalized and paid.”
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.
“Farmers in Minnesota should be able to rest better knowing that crop insurance is protecting their hard work and investment,” Parkerson continued. “And the people in the rural communities where they live should be relieved that these farmers are able to stay in business because they planned ahead and bought crop insurance.”
The good news for taxpayers is that the lion’s share of those payments comes from the private insurance companies that sell and service the Federal crop insurance program. For their part, the private insurance companies have contributed substantially from the funds they set aside as loss reserves.
In total, the crop insurance industry has paid out over $8.5 billion in losses for 2008 nationwide.