Many farmers in Indiana are covered by insurance which may come in handy because of the drought.

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Dr. Joseph Glauber, Chief Economist for the USDA, says about 45 percent of corn crops and 35 percent of soybean crops are in poor or very poor conditions. Jim Rank, Farm and Crop Director with Indiana Farm Bureau Insurance, says in Indiana, 73-percent of the corn and soybean acres are insured. "If the drought's damage mirrors the 1988 drought that we had which was the last the major drought in Indiana and across the United States, payments could reach $20 billion," Rank says.

Dr. Glauber says it's too soon to tell if the amount of payouts reaches the amount from the drought of 1988. He says they'll have a better idea in August when more crops are harvested.

Glauber adds that now, farmers especially in Indiana tend to insure their crops at high coverage rates.