By Emma Greenwood
To successfully grow a crop, you have to have the right amount of sun and the right amount of rain. You have to guard against insects and other pests. Hail storms, lightning strikes and unseasonable freezes can also destroy a farmer’s hard work.
In the past, these disasters would drive farming families into financial ruin. Fortunately, today, different insurance policies help protect farmers from these events, which will likely occur throughout their farming career. These insurance policies not only protect farmers; they ensure that farms can survive each season so that food still arrives on your plate!
There are over two million farmers in the United States, which means there are over two million people in the United States worried about their harvest. With crop insurance, farmers can rest a bit easier at night.
“John F. Kennedy said it best when he said, ‘The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways.’ Farmers take pride in their work, their land and their harvests. Unfortunately, the price of everything has increased for farmers except the market prices. Every year is a risk for them to help feed our country and our future. If they were to lose their crops, it could destroy them financially. Crop insurance helps keep that from happening,” notes Ashley Krueger, an insurance agent for TrustPoint Insurance & Real Estate.
What Is Crop Insurance?
Crop insurance is for farmers who raise crops. Its purpose is to protect against the loss of crops. These losses may be due to natural disasters or the loss of revenue due to declines in the prices of agriculture commodities.
Why It’s a Need
Nobody can predict when a natural disaster will happen or when you will lose profit on your crops. Here are four reasons farmers should evaluate their crop coverage for the coming year and ensure they have the right coverage:
- Protects Revenue – The policy can enable plan holders to lock in a set threshold of revenue to help manage price and yield risk.
- Crop Loss Protection – This provides financial relief against crop loss and production costs.
- Revenue Projection – This coverage is based just on the projection revenue price.
- Peril Protection – Covers losses from natural disasters and other unexpected events.
Understanding Crop Insurance
- Multiple Peril Crop Insurance (MPCI). This covers crop losses, including lower yield by natural events such as weather.
- Crop – Hail Insurance. This specific insurance is recommended for farmers who are in areas where hail is a frequent event.
Here’s hoping to a very successful 2020 agricultural season for all the farmers out there!