That was also nearly true for Iowa, but it is possible the 2012 underwriting losses may wipe out all of the underwriting gains (includes farmer paid and FCIC paid premiums) for the past 23 years in Illinois, i.e. Illinois farmers may net all 23 years of subsidy in 2012. This would require an Illinois loss ratio of 400 percent.”
Crop insurance indemnity payments will soon be distributed based on crop yield loss and coverage level, with some farmers at high coverage levels receiving more than they expected at the level of the spring guarantees. The expectation of harvest price coverage may have caused more farmers to forward contract more grain than normal, had they not had the harvest price option. While the higher cost of the harvest price option may be shifted to farmers from the government during the next Farm Bill consideration, the actual amount of USDA payments to crop insurance policy holders may be lower than previously expected.
Source: FarmGate blog