Crop insurance claims likely to hit $16 billion in wake of 2012 drought

The 2012 megadrought was the worst since the Dust Bowl. Initial measurements suggest that it was responsible for a significant drop in the country’s economic growth in the middle of the year as corn prices spiked and farmers struggled to make ends meet. Which will be easier to accomplish given the government’s likely $16 billion crop insurance payout. From The New York Times: The Agriculture Department, which runs the program, said that the total losses from crops harvested last year would not be known for weeks, but that costs from the program were estimated to be $15.8 billion, up from $9.4 billion in 2011.