In brief:Midwestern farmers may be socked by higher crop insurance rates after flooding this year caused massive losses.
The full story
Despite the fact that levees have largely gone unrepaired after this year's flooding and before winter snows began building, farmers are most likely to feel the brunt of the costs crop insurance providers took after this year's flooding.
When the Army Corps of Engineers released near-flood waters from reservoirs in Montana, Nebraska and the Dakotas this spring, it lead to downstream states like Iowa and Missouri seeing flooding after levees, unable to take the weeks of sustained pressure, gave way. Many homes and farms were ruined and crop losses were in the tens of millions.
The U.S. Department of Agriculture says it's paid out $114 million in claims so far for the flooding damage on 436,000 acres along the Missouri River. That's only for one river, with claims along the Mississippi River expected to be much higher.
Farmers planting winter crops saw their premiums jump by as much as five times, however. They're obviously angry over this, as the flooding was due to government action, not their own risks going up.
Summing up
The rising insurance rates after government action to open flood gates and destroy levees is adding insult to injury to these farmers.
Photo credits: Stock
