Revenue from earned premiums for the Agricultural Insurance industry declined over the five years to 2018, despite increases in insured acreage. Industry premiums declined due to declines in the prices of key commodities, such as soybeans and corn. Despite relative consistency in of crop contracts and acreage gains, earned premiums fell from 2014 to 2016 due to declines in the prices of corn, soybeans, and other essential commodities. Large losses due to natural disaster, particularly drought, have placed negative pressure on industry operating income and caused profit margins to fluctuate intermittently throughout the period. Over the five years to 2023, industry revenue is forecast to rise. This growth is anticipated to stem from rising prices for corn, soybeans, wheat, cotton and more agricultural commodities forecasted during the outlook period. In addition, the 2014 Farm Bill, and the more recently signed FAST Act, will continue to support the use of crop insurance to protect production and prices for farmers.
Agricultural insurance, also known as crop insurance, is purchased by agricultural producers, including farmers, ranchers and others. It protects against either the loss of crops due to natural disasters, such as hail, drought and floods, or the loss of revenue due to declines in the prices of agriculture commodities.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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