When you insure your farm, you have countless assets and liabilities that deserve strong, tailored coverage. No benefit is perhaps more important than your crop insurance.
Your crop production and yield will be one of the factors that could make or break your farm. But, crops are among the most sensitive assets on any farm. They are extremely vulnerable to loss, which is a massive financial liability to any farmer. Here’s why you need it.
Crop Insurance Basics
Fundamentally, 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:
· Crop-Hail policies may be purchased through a private insurer at any point in the season and protect your crops against hail.
· Multiple Peril Crop Insurance policies are only available at select insurers through the Federal Crop Insurance Program. This policy covers your crops against a wide range of threats, such as excessive moisture and freeze. This insurance must be purchased before the crops are planted.
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.
Additionally, work with your insurance agent to compare prices and coverage options of different farm insurance policies. There are numerous dangers that your farm might face, such as property damage from natural disasters and a loss of livestock. You will also need to protect your employees, the machinery you own, and your dwelling if you live on the property. Each of these will go into building a comprehensive farm insurance policy that truly represents you.