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Drought Could Spell Steep Crop Insurance Losses:

Concern is beginning to be expressed that severe temperatures and lack of rain may cause steep losses in the Midwest’s corn crop, but insurers remain hopeful that beneficial rains will fall and help crops in troubled areas of the country
July 10, 2012

Concern is beginning to be expressed that severe temperatures and lack of rain may cause steep losses in the Midwest’s corn crop, but insurers remain hopeful that beneficial rains will fall and help crops in troubled areas of the country. Laurie Langstraat, a spokesman for the National Crop Insurance Services in Overland Park, Kan., which represents the nation’s crop insurers, cautioned that it is premature to predict a devastating season for Midwest corn farmers and the crop insurance industry. “It’s too early to tell,” she says. “In some areas, like Indiana, the corn crop isn’t doing very well.” However, in other areas, like Minnesota, North Dakota, South Dakota and Iowa, “it’s not too bad yet,” she notes. Langstraat added that the crop insurance industry stands ready to handle losses. She estimated that nationwide, approximately 83 percent of the insurable acres are covered by crop insurance.

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