A new report by the Farm Credit Services of America shows crop insurance saved nearly 21,000 jobs in four states during the 2012 drought. The 20-page report, which details the history of the crop insurance program, says crop insurance helped cover the 2012 drought shortfall and saved 20,900 jobs across Iowa, Nebraska, South Dakota, and Wyoming, with an annual labor income of $721.2 million. In 2012, corn production was down more than 29 percent, and soybean production was down six percent. The low yields were coming on a year that started with low beginning stocks and tight U.S. and global supplies.
Projected prices rose in anticipation of short supplies. Farmers faced low yields and ended up facing big expenses to buy crops at higher prices to fulfill marketing obligations and to feed on-farm livestock.
Source: NAFB News Service