The Basics of Crop Insurance

The Basics of Crop Insurance

Insuring your farm means protecting all the commercial assets and products on the property, and that includes your crops. After all, your crop yield is often what will make or break your business year over year. And not only that, but it’s also something that is extremely vulnerable to loss. 

As a result, you need a comprehensive crop insurance policy as part of your farm insurance portfolio. At its most basic level, crop insurance provides compensation to the farm if crops are lost or destroyed due to certain incidents.  

Covered incidents often include: 

These natural disasters are not only hard to predict, but they also are highly likely to cause significant and extensive crop damage. It is very difficult, after all, to predict precisely how severe such events are going to be, and how badly the end-result will be for your crops. 

Additionally, crop insurance can also cover a loss of income due to accidents or changes that are out of the farm’s control. For example, if you must stop production due to government mandates or declines in agriculture prices, this coverage can still assist you. 

When you purchase a farm insurance policy as an agricultural produce, be sure that crop insurance is included. Not all farm insurance policies are created equal, and there are two main types of crop insurance policies: 

When you have to file a claim, you will contact your insurance provider who will then investigate the claim and survey the damage. Once the claim is approved, you will receive compensation for crops that have been lost, and you may receive temporary revenue assistance. 

How Much is Crop Insurance 

Crop insurance prices vary wildly depending on your location, size of the farm, types of crops being grown, the season and more. Always double check that you have provided the right acreage and planting details to your insurance provider, as false information or an underinsured field may lead to a lack of coverage.