Extreme weather forced the Federal Crop Insurance Program (FCIP) to pay out a record-breaking $17.3 billion in crop losses last year. Payments made to farmers during the 2012 growing season to cover losses from drought, heat and hot wind alone accounted for 80 percent of all farm losses, with many Upper Midwest and Great Plains states hit hardest.
The report finds that American farms, particularly in the Upper Midwest and Great Plains, were primarily impacted by three major forms of extreme weather in 2012: drought, heat and hot wind, all of which are expected to increase in the future. The top ten states with the largest overall crop insurance payouts due to drought, heat and hot wind were:
• Illinois: 98% of all crop losse, costing $3,011,443,799
• Iowa: 97% of losses, costing $1,924,444,160
• Indiana: 97% of losses, costing $1,130,302,660
• Kentucky: 96% of losses, costing $454,380,256
• Missouri: 95% of losses, costing $1,098,310,111
• Wisconsin: 94% of losses, costing $372,479,370
• South Dakota: 93% of losses, costing $1,029,780,352
• Kansas: 93% of losses, costing $1,273,662,944
• Nebraska: 92% of losses, costing $1,427,738,976
• Texas: 75% of losses, costing $974,548,606
A Purdue University study shows Indiana's worst drought in nearly a quarter of a century didn't stop farmland values from continuing to grow in 2012.
The study released Tuesday shows the value of high-productivity land jumped by 19 percent to more than $9,000 per acre. Average-productivity land increased 17 percent to nearly $7,500 per acre. Poor-productivity land was up by nearly 15 percent to $5,750 per acre.
Purdue Extension agricultural economist Craig Dobbins says high net farm income, low interest rates and high farmland demand with limited supply combined to push the land values up.
The study says farmland cash rents also increased statewide by about 10 percent. High-productivity land rents increased $29 per acre, average-quality land by $21 per acre, and rent for poor-quality land by $15 per acre.