While the crop insurance industry has been concentrating on drought as the major source of indemnity payments, excess moisture—especially at the start of the 2019 season—was brought to the forefront. The record prevented planting that resulted from excess moisture required the industry to understand the true extent of potential payments.
Using the U.S. MPCI model, AIR was able to accurately value prevented planting damage in September 2019, before final totals were published; we also provided yield estimates in October that were within 2% of the final corn yield and 1% of the final soybean yield and generated the industry net loss ratio expected by the industry.
Read the AIR Current “Wet Weather Impacts on U.S. Crop Yields: What Can We Learn from 2019?”