The Importance of Crop Insurance and How it Can Benefit Farmers
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Last updated on: August 8, 2021
When it rains, it pours—and this age-old expression is certainly applicable to farmers and their crops in the event of natural disasters.
Unexpected, uncontrollable circumstances can wreak havoc on crops, and if farmers are not properly protected, their livelihood is also at stake.
The benefits of Crop Insurance are plentiful, and a farmer would be wise to review the most important reasons for safeguarding their work and property with this all-important realm of coverage.
We will explore the Crop Insurance advantage below.
What is Crop Insurance?
A clear understanding of what exactly Crop Insurance is and how it works is imperative for making decisions surrounding obtaining such a policy.
Crop Insurance protects farmers and their crops from suffering major financial losses and setbacks in the face of inclement weather conditions or other catastrophic incidences.
However, it is important to note that not all types of crops are covered with this type of insurance.
The most commonly covered crops include corn, cotton, soybeans, and wheat.
The type of crops infrequently covered under these policies include dry peas, pumpkins, blueberries, citrus fruits, and walnuts.
There are two main types of Crop Insurance—“Crop-Hail Insurance” and “Crop Revenue Insurance.”
Crop-Hail Insurance provides coverage to farmers located in areas that are known to be prone to experiencing hail.
Crop-Hail Insurance is provided by private insurers.
In addition to hail, this type of coverage usually covers potentially perilous weather-related events such as fire, wind, vandalism, lightning, and replanting costs associated with occurrences other than hail.
Typically, a low or no deductible is needed with this type of insurance, and it can be purchased at any point throughout the year, including the growing season.
Crop Revenue Insurance is obtained by farmers when they experience either a low yield or crop prices dip too low for financial stability.
Crop Revenue Insurance protects the profitability of the business and can be beneficial as a supplement,providing funds in the event of monetary loss.
Benefits of Crop Insurance to Farmers
Hardworking farmers and their families know the importance of protecting their money, crops, and potentially devastating financial consequences that may result from extreme weather or natural disasters.
One of the top benefits of Crop Insurance is that a farmer can receive a payment in the event of extreme or harsh weather events that cause heavy loss to their crops—which are, essentially, their property.
Crop Insurance provides farmers with financial relief to help recover from dire situations and it can also provide an added layer of protection against filing bankruptcy.
Depending on the extent of the damage and/or losses (physical damage to crops as well as financial suffering and setbacks), farmers may also access funds necessary for rebuilding or strengthening their business, in addition to borrowing and repaying the capital needed to make these strategic moves.
Basically, it ensures a farmer’s ability to remain in their line of work despite any setbacks while continuing to propel their business forward, rather than finding their finances and profession at a standstill.
If you’re a farmer who loves cultivating your land and not only putting food on your family’s table but on the tables of many families across the country as well, insuring yourself and your agricultural business against destructive occurrences is also smart.
Are you a farmer looking for affordable, dependable Crop Insurance to protect your crops and farm against the unexpected?
Alchemy Insurance Agency, the top commercial insurance agency in Pennsylvania, works tirelessly to compare policies from multiple carriers in order to connect you with the best price for your insurance needs.