Crop Insurance Study Finds Payout Differences Persist

University of Illinois researchers say loss ratios and indemnity patterns remained consistent with previous years.

URBANA, Ill. (RFD News) — A new University of Illinois study found the federal crop insurance program performed largely in line with historical trends in 2025, though indemnity payments varied by crop.

Researchers found the program posted a below-average loss last year, with total indemnities remaining lower than total premiums.

The study found corn and soybeans recorded the lowest loss ratios, while rice, peanuts and cotton generated much larger indemnity payouts.

Researchers said those differences have remained consistent over time, with Midwest producers generally receiving smaller net crop insurance benefits than growers in other regions.

Related Stories
Strong new-crop soybean demand and rising corn shipments provided the clearest support in an otherwise mixed report.
Each contract covers 5,000 bushels and is priced as a differential to corn futures. That structure allows users to hedge changes in the sorghum-to-corn cash spread without taking full exposure to broader grain-market price movements.
Through the Genesis Mission and the Agriculture Advanced Research and Development Authority (AgARDA), USDA is expected to launch an Agricultural National Science & Technology Challenge later this year.
The massive options position has drawn attention across the grain trade because of its size and potential market impact.
The lack of progress on agricultural negotiations leaves producers relying more heavily on bilateral trade agreements.
China’s latest agricultural strategy emphasizes higher-quality food, modern farming and diversified import sources.

Knoxville native Neal Burnette-Irwin is a graduate from MTSU where he majored in Journalism and Entertainment Studies. He works as a digital content producer with RFD News and is represented by multiple talent agencies in Nashville and Chicago.


LATEST STORIES BY THIS AUTHOR:

Jean Treas says working at her family’s roadside produce stand helps consumers learn where their food comes from.
The American Nurses Foundation is accepting applications for eight micro-grants focused on nurse retention.
Chief Tom Schultz says new technology is improving wildfire detection and helping firefighters respond faster.
University of Nebraska President Dr. Jeffrey Gold explains how the parasite spreads, common symptoms and ways consumers can reduce their risk.
Wheat Quality Council scouts say the crop is meeting expectations, with dry conditions noted in some areas.
Growers got a firsthand look at new varieties and the research shaping Louisiana’s next sugarcane crop.
Agriculture Shows
Agriculture is the most important industry in the world, and Ag PhD Daily brings you the information you need to best manage your business only on RFD-TV and RFD+
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.