Oklahoma's Latest Farm
And Ranch News
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Grain and Farm Supply Cooperatives Have Options for Managing Skyrocketing Insurance Cost |
Grain and farm supply cooperatives are facing sharply higher property insurance premiums due to the increasing frequency and severity of weather-related disasters. U.S. property and casualty insurers have responded to the increase in natural catastrophe claims by raising prices, increasing deductibles and tightening coverage terms and conditions. For agribusinesses, insurance expense growth has outpaced total operating expense growth by a wide margin since 2021.
According to a new report from CoBank’s Knowledge Exchange, commercial property insurance rates will remain elevated for the next 12-18 months, as insurers attempt to make up for recent year losses and pursue rate adequacy in an environment of higher costs. The CoBank report outlines strategies grain and farm supply cooperatives can evaluate to mitigate higher costs for insuring grain elevators, input storage buildings and other facilities.
“Over the past three years, cooperatives and their property-casualty insurers have faced a perfect storm of excessive property losses due to floods, tornados and a host of severe weather events,” said Kenneth Scott Zuckerberg, lead farm supply and biofuels economist for CoBank. “And those losses have come during an inflationary period when the costs for labor and building materials needed to repair physical structures were much higher.”
In 2022, the cost of U.S. weather and climate disasters totaled $170 billion. That’s up from $155 billion in 2021 and $114 billion in 2020. The magnitude of three consecutive years of above-average losses has driven one Omaha-based underwriter of property insurance for grain and farm supply cooperatives to exit the market. Other agribusiness insurers have restricted coverage.
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if you missed this morning's Farm News - or you are in an area where you can't hear it- click below for this morning's Farm news from Ron Hays and KC Sheperd on RON.
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Sponsor Spotlight
The Oklahoma Cattlemen's Association is the trusted voice of the Oklahoma Cattle Industry. With headquarters in Oklahoma City, the OCA has a regular presence at the State Capitol to protect and defend the interests of cattlemen and cattlewomen.
Their Vision Statement explains the highest priority of the organization- "Leadership that serves, strengthens and advocates for the Oklahoma cattle industry."
To learn more about the OCA and how you can be a part of this forward-looking group of cattle producers, click here for their website. For more information- call 405-235-4391.
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Rural Oklahoma is full of some of the greatest success stories throughout the entire state and is a big reason why Oklahoma is on track to become a top 10 state.
The Road to Rural Prosperity dives into these stories, bringing you stories covering rural life, agriculture, energy, healthcare, tourism, and politics affecting rural America.
The Road to Rural Prosperity is here to tell stories about rural America, for rural America.
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Since the legalization of Medical Marijuana in Oklahoma with State Question 788- criminals have flocked to the state to set up illegal grow houses because of cheap permits, cheap land and lax rules allowing them to get into the business of growing marijuana in Oklahoma- supposedly for the in state Medical Marijuana market.
Ron Hays talks with Oklahoma Bureau of Narcotics spokesman Mark Woodward about how these enterprises have invaded Oklahoma- the magnitude of the current problem and how the state is pushing back on thousands of bad people who have set up shop in the state- with the hope to reduce the number of these operations dramatically in the days to come. It's a huge problem all across rural Oklahoma but Woodward believes progress is being made to reign in these illegal marijuana farms.
Search for Road to Rural Prosperity and subscribe on your favorite Podcast platform.
To hear this podcast, you can click here or tap below:
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God Bless!
Reach Out To Us:
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Tim West
President/General Manager
Rural Oklahoma Networks
405-317-6361
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Mike Henderson
Director of Sales
405-615-4922
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KC Sheperd
Farm Director
Radio Oklahoma Ag Network
405-443-5717
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Ron Hays
Senior Farm/Ranch Broadcaster
Radio Oklahoma Ag Network
405.473.6144
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