Record rains have flooded fields across Texas and Oklahoma; however, despite damage farmers are reaping higher yields and ranchers' feed costs have fallen sharply since May's floods. While floods tend to grab national attention and headlines, droughts are actually much more costly in terms of its impact on agriculture.
During the 2012-2014 drought period, the U.S. Agriculture Department paid out $23.892 billion in crop insurance claims due to dry soils. During that same time period, crop insurance claims related to floods totaled $6.209 billion. Insurance payments have not been calculated for the damage caused by this Spring's floods, but the last time (2011) a major flood caused heavy damage to a key agriculture region, crop insurance claims related to excess water totaled $3.476 billion.
Want to learn more about Crop Insurance? Join ABIA's Crop Insurance Task Force.