What Is The Health Of The Crop Insurance Industry?
With all of the crop production problems that have beset the Cornbelt this year, you may have a close relationship with your crop insurance agent. Not that you will be picking out curtains or anything like that, but this has certainly been a year for frequent communication and it has not come to an end. You may even be wondering about all of the claims that will have to be paid, and if crop insurance companies can weather the current storm. That’s a good question, too! The crop insurance industry continues to diminish in size annually with companies buying each other. But are they making money and are the companies that you expect to send you an indemnity check in good financial health? Iowa State University economist Bruce Babcock conducted a health check up on the crop insurance industry after the USDA reported high profitability and the industry disagreed. USDA’s Risk Management Agency said the average annual rate of return on equity within the industry since 2000 has been 19%, whic
