In brief: The United States Department of Agriculture says that corn and soy crop insurance rates will drop in 2012.
The full story
An updated federal methodology for loss estimation and lower expected claims for 2012 mean that insurers will drop rates by an average of 7% for corn and 9% for soybeans, say federal overseers.
The USDA's Risk Management Agency said the lower premium rates will more accurately reflect risks. The USDA pays .60 of each $1 spent on crop insurance premiums, with a total of $7 billion spend this year alone and insuring 256 million acres of cropland.
Summing up
Insurers question the new federal methods, but agricultural groups say premiums have historically been too high.
Photo credits: Stock
