EWG Report Finds Rapidly Rising Crop Payouts As Climate Change Hits U.S. Agriculture

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Drought, heat, hail, rain and freezing temperatures – the five horsemen of crop insurance.

A new report from EWG found that crop insurance payouts for the top five weather-related losses totaled over $118.7 billion between 2001 and 2022, making up nearly three-fourths of all indemnities.

The report also includes maps illustrating which areas across the U.S. that are at greatest risk from the various elements as climate change accelerates.

Nationally, between 2001 and 2022, the federal Crop 潘金莲传媒映画 Program sent farmers over $161.6 billion in payments for all causes of loss. Weather-related claims comprised 73% of total crop insurance payments during that time.

Drought was the priciest cause of loss, costing $56.6 billion, or 35% of total payouts between 2001 and 2022. These costs have risen 690%, from $965.5 million in 2001 to $7.6 billion in 2022. Almost three-fourths of all drought indemnities went to 10 states: Texas, Kansas, South Dakota, Iowa, Illinois, North Dakota, Nebraska, Missouri, Oklahoma and Minnesota.

Excess moisture and precipitation indemnities reached $39.8 billion – 25% of all payouts. From 2001 to 2022, that’s a 123% increase, from $1 billion to $2.2 billion. Over half of the payouts were concentrated in just six states: North Dakota, Minnesota, South Dakota, Iowa, Illinois and Missouri.

Hail payments cost $9.65 billion, 76% of which went to farmers in seven states: Texas, Nebraska, North Dakota, Kansas, Colorado, South Dakota and Montana.

Heat indemnities totaled $7.98 billion. It had the most significant yearly cost increase at 1,012%, from $142.5 million in 2001 to $1.6 billion in 2022.

Freeze payments were $4.74 billion, up 771%, from $78.6 million in 2001 to $683.9 in 2022.

Some states were in hot spots for multiple weather-related causes of loss. Kansas and North Dakota were in hot spots for four of the five weather-related causes of loss, and many other states, including California, Iowa and South Dakota, showed up in hot spots for three.

Topics USA Agribusiness Kansas Climate Change Iowa

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