Drought, warmth, hail, rain and freezing temperatures – the 5 horsemen of crop insurance coverage.
A brand new report from EWG discovered that crop insurance coverage payouts for the highest 5 weather-related losses totaled over $118.7 billion between 2001 and 2022, making up practically three-fourths of all indemnities.
The report additionally consists of maps illustrating which areas throughout the U.S. which can be at best threat from the varied components as local weather change accelerates.
“EWG’s new report and sizzling spot map reveal that the local weather emergency and crop insurance coverage are inextricably linked,” mentioned EWG Midwest Director Anne Schechinger, an agricultural economist who authored the report. “As excessive climate occasions turn into extra frequent and extra catastrophic, farmers will proceed to undergo, and taxpayers will proceed to foot a lot of the astronomical invoice.”
Nationally, between 2001 and 2022, the federal Crop Insurance coverage Program despatched farmers over $161.6 billion in funds for all causes of loss. Climate-related claims comprised 73% of complete crop insurance coverage funds throughout that point.
Drought was the priciest reason behind loss, costing $56.6 billion, or 35% of complete payouts between 2001 and 2022. These prices have risen 690%, from $965.5 million in 2001 to $7.6 billion in 2022. Nearly three-fourths of all drought indemnities went to 10 states: Texas, Kansas, South Dakota, Iowa, Illinois, North Dakota, Nebraska, Missouri, Oklahoma and Minnesota.
Extra moisture and precipitation indemnities reached $39.8 billion – 25% of all payouts. From 2001 to 2022, that’s a 123% improve, from $1 billion to $2.2 billion. Over half of the payouts had been concentrated in simply six states: North Dakota, Minnesota, South Dakota, Iowa, Illinois and Missouri.
Hail funds value $9.65 billion, 76% of which went to farmers in seven states: Texas, Nebraska, North Dakota, Kansas, Colorado, South Dakota and Montana. Prices had been up 204%, from $228.3 million in 2001 to $692.9 million in 2022.
Warmth indemnities totaled $7.98 billion. It had essentially the most vital yearly value improve at 1,012%, from $142.5 million in 2001 to $1.6 billion in 2022.
Freeze funds had been $4.74 billion, up 771%, from $78.6 million in 2001 to $683.9 in 2022.
Some states had been in sizzling spots for a number of weather-related causes of loss. Texas was within the high 10 states for every of the 5, and farmers obtained over $15.5 billion for all classes mixed. Kansas and North Dakota had been in sizzling spots for 4 of the 5 weather-related causes of loss, and lots of different states, together with California, Iowa and South Dakota, confirmed up in sizzling spots for 3.
The report’s maps figuring out the recent spots for high climate threats to agriculture throughout the U.S. present most threats concentrated within the Midwest and the West Coast. Nevertheless, warmth is taken into account a big menace throughout many of the nation. The “freeze” map signifies a rising menace for southern states, together with the southernmost elements of Texas and Florida.
These recognized sizzling spots could also be most susceptible to local weather emergencies and the most certainly to wish excessive payouts.
To learn the complete report, go to https://www.ewg.org/research/crop-insurance-pays-farmers-billions-dollars-weather-related-losses-closely-linked-climate.
Picture: Cotton Drought
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