|
RA Surpassed APH in Minnesota Acres Insured in 2003
Federal crop insurance participation in Minnesota declined slightly in 2003 with a decline of 2.2% in policies sold and a decline of 0.5% in acres insured from 2002, according to David Bullock, risk management
specialist at the Minnesota Department of Agriculture.
Areas of highest participation were the Red River Valley and central counties of Minnesota. Unlike 2002, when most of the losses were concentrated in the Red River Valley due to flooding, in 2003 the highest losses
were spread across a swath of central Minnesota extending from Traverse County in the northwest to Fillmore County in the southeast. On a per capita and loss ratio basis, the hardest hit counties were concentrated
in the Twin Cities metro area where many high value crops are produced.
Unlike 2002, when wheat and barley were the dominant loss crops, in 2003 the crops with the largest total losses were soybeans and corn, predominately due to drought. On a per capita basis, apples, potatoes, and
cultivated wild rice were especially hard hit, with the three crops producing the highest indemnities per policy (average of $5,506) and per acre insured (average of $85.05).
In terms of insurance plans, Actual Production History (APH) was the top plan in policies sold while Revenue Assurance (RA) surpassed APH in acres insured. It appears that the recent trend of producers switching from
other plans of insurance to RA is continuing in Minnesota.
The publication “Minnesota 2003 Federal Crop Insurance Summary” is available for download in its entirety from the MDA risk management web site at www.mda.state.mn.us/riskmgmt .
Table 1. Minnesota, 2003, Total Indemnities Paid by Crop
|
Rank
|
Crop
|
Total Indemnities Paid
|
Percent of State Total
|
Cumulative Percent
|
2002
|
Percent Changes
|
|
1
|
Soybeans
|
$104,267,449
|
71.3%
|
71.3%
|
$17,898,369
|
482.6%
|
|
2
|
Corn
|
$27,254,533
|
18.6%
|
90.0%
|
$10,784,875
|
152.7%
|
|
3
|
Forage Production
|
$3,658,999
|
2.5%
|
92.5%
|
$3,314,723
|
10.4%
|
|
4
|
Sugarbeets
|
$3,228,343
|
2.2%
|
94.7%
|
$26,058,055
|
-87.6%
|
|
5
|
Wheat
|
$1,621,169
|
1.1%
|
95.8%
|
$32,898,930
|
-95.1%
|
|
6
|
Potatoes
|
$1,544,069
|
1.1%
|
96.8%
|
$4,102,932
|
-62.4%
|
|
7
|
Peas (green)
|
$908,971
|
0.6%
|
97.5%
|
$2,055,841
|
-55.8%
|
|
8
|
Beans (Dry)
|
$747,077
|
0.5%
|
98.0%
|
$3,840,776
|
-80.5%
|
|
9
|
Sweet Corn
|
$645,961
|
0.4%
|
98.4%
|
-
|
100.0%
|
|
10
|
Sunflowers
|
$596,567
|
0.4%
|
98.8%
|
$2,076,426
|
-71.3%
|
|
11
|
Canola
|
$485,826
|
0.3%
|
99.2%
|
$4,309,540
|
-88.7%
|
|
12
|
Cultivated Wild Rice
|
$452,694
|
0.3%
|
99.5%
|
$177,818
|
154.6%
|
|
13
|
Barley
|
$405,919
|
0.3%
|
99.7%
|
$4,418,744
|
-90.8%
|
|
14
|
Oats
|
$136,481
|
0.1%
|
99.8%
|
$1,508,992
|
-91.0%
|
|
15
|
Beans (Processing)
|
$90,180
|
0.1%
|
99.9%
|
$193,969
|
-53.5%
|
|
16
|
Forage Seeding
|
$80,687
|
0.1%
|
100.0%
|
$1,151,437
|
-93.0%
|
|
17
|
Flax
|
$38,781
|
0.0%
|
100.0%
|
$55,098
|
-29.6%
|
|
18
|
Apples
|
$27,452
|
0.0%
|
100.0%
|
$92,736
|
-70.4%
|
|
19
|
Hybrid Corn Seed
|
-
|
0.0%
|
100.0%
|
$27,230
|
-100.0%
|
|
20
|
Popcorn
|
-
|
0.0%
|
100.0%
|
$4,867
|
-100.0%
|
|
21
|
Onions
|
-
|
0.0%
|
100.0%
|
-
|
0.0%
|
|
22
|
Sweet Corn (Fresh Market)
|
-
|
0.0%
|
100.0%
|
-
|
0.0%
|
|
23
|
Rye
|
-
|
0.0%
|
100.0%
|
-
|
0.0%
|
|
24
|
Nursery – Field Grown & Container
|
-
|
0.0%
|
100.0%
|
-
|
0.0%
|
|
25
|
Peas (Dry)
|
-
|
0.0%
|
100.0%
|
$11,451
|
-100.0%
|
|
26
|
Grain Sorghum
|
-
|
0.0%
|
100.0%
|
-
|
0.0%
|
|
Source: MN Department of Ag
|
Table 2. Minnesota, 2003, Total Policies Sold by Insurance Plan
|
Rank
|
Insurance Plan
|
Policies Sold
|
Percent of State Total
|
2002
|
Percent Changes
|
|
1
|
Actual Production History
|
76,924
|
61.6%
|
86,069
|
-10.6%
|
|
2
|
Revenue Assurance
|
37,520
|
30.1%
|
25,587
|
46.6%
|
|
3
|
Crop Revenue Coverage
|
6,509
|
5.2%
|
11,989
|
-45.7%
|
|
4
|
Dollar Amount of Insurance
|
2,452
|
2.0%
|
2,338
|
4.9%
|
|
5
|
Income Protection
|
678
|
0.5%
|
764
|
-11.3%
|
|
6
|
Group Risk Plan
|
573
|
0.5%
|
663
|
-13.6%
|
|
7
|
Yield Based Dollar Amount of Insurance
|
147
|
0.1%
|
153
|
-3.9%
|
|
Source: MN Department of Ag
|
Table 3. Minnesota, 2003, Total Indemnities by Insurance Plan
|
Rank
|
Insurance Plan
|
Total Indemnity
|
Percent of State Total
|
2002
|
Percent Changes
|
|
1
|
Revenue Assurance
|
$80,449,288
|
55.0%
|
$32,283,081
|
149.2%
|
|
2
|
Actual Production History
|
$55,636,321
|
38.1%
|
$73,661,453
|
-24.5%
|
|
3
|
Crop Revenue Coverage
|
$9,965,582
|
6.8%
|
$9,804,696
|
1.6%
|
|
4
|
Dollar Amount of Insurance
|
$80,687
|
0.1%
|
$1,151,437
|
-93.0%
|
|
5
|
Income Protection
|
$59,280
|
0.0%
|
$1,089,102
|
-94.6%
|
|
6
|
Group Risk Plan
|
-
|
0.0%
|
-
|
0.0%
|
|
7
|
Yield Based Dollar Amount of Insurance
|
-
|
0.0%
|
$27,230
|
-100.0%
|
|
Source: MN Department of Ag
|
|
