2012 saw the worst U.S. drought since the 1930s and led to record payouts on crop-insurance claims. The drought caused a surge in corn and soybean prices as yield fell due to dry fields throughout the Great Plains region. Crop insurance payments made a difference for many farmers, who were protected against yield losses and price declines.
All told, 282 million acres of crops were insured in 2012, up 6.1 percent from the previous year. USDA estimates that farms planted 326.3 million acres of 16 principal crops in 2012. Government data show farmers collected $11.581 billion for damages as of early January 2013. Payments are up 6.8 percent from 2011. Total premiums paid for government subsidized crops totaled $11.06 billion in 2012 compared with $11.97 billion a year earlier.
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