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Crop Insurance Payouts Top $10 Billion in 2011

National Crop Insurance Services says that U.S. crop insurance payouts hit $10.08 billion in 2011, breaking the previous record of $8.86 billion in 2008
March 6, 2012

National Crop Insurance Services says that U.S. crop insurance payouts hit $10.08 billion in 2011, breaking the previous record of $8.86 billion in 2008. Record payouts for losses can be attributed to drought in the Great Plains, floods from the Mississippi River, and freezing weather in the South. About 5 percent of claims have yet to be paid.

“The ability of U.S. agriculture to sustain more than $10 billion in insured losses and seamlessly finance itself for the 2012 crop season should not be taken for granted,” Tom Zacharias, the group’s president, said in the statement. The payouts show the federally subsidized insurance program, the target of cuts in President Barack Obama’s budget proposal, is working, he said. The previous record crop-insurance payout was $8.67 billion in 2008.

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