Crop insurance payouts pushing premiums higher in 2024

Jan 25, 2024

Producers can expect to see higher crop insurance premiums for the 2024 crop year. The increase is mainly due to losses in 2021 and 2022.

“This year, we’re seeing the consequences of 2021 and 2022 conditions and the related losses,” explained Darryl Kay, Agriculture Financial Services (AFSC) chief executive officer. “As many producers are aware, 2021 saw historic claim payments and that had an impact on both the insurance fund balance and individual producer’s experience, which translates into higher premiums.

“We’re not trying to recover recent losses in a short period of time; rather, our premium framework takes a longer-term, 25-year approach. This longer view means greater premium predictability and stability for our clients.”

Commodity prices, one of the bigger drivers of recent premium increases, appear to have plateaued and have even decreased for most crops. Price-driven increases to premiums are not expected for many crops in 2024, except durum wheat and most pulse crops. Markets are difficult to predict so this expectation could change and will depend on what the market does for individual commodities.

Loss experience is the largest expected driver of premium increases for 2024.

Source : AFSC

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Border View Farms is a mid-sized family farm that sits on the Ohio-Michigan border. My name is Nathan. I make and edit all of the videos posted here. I farm with my dad, Mark and uncle, Phil. We also have a part-time employee, Brock. My dad started the farm in 1980. Since then we have grown the operation from just a couple hundred acres to over 3,000. Watch my 500th video for a history of our farm I filmed with my dad.

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