Don't leave everything to chance; keep yourself protected with an insurance
Some farms make all or most of their profits through the crops that they grow. When a disaster, such as a tornado, wildfire or flood strikes and the crops they depend on are devastated, crop insurance can reimburse them for the losses they face. Before buying crop insurance, it’s vital that farmers submit an accurate representation of the planted acreage they have per unit. Should they underreport, they may not be reimbursed for all losses they could realistically experience.
Crop insurance is a type of protection policy that covers agricultural producers against unexpected loss of projected crop yields or profits from produce sales at the market.
Crop insurance is divided into two categories: crop yield and crop revenue. Crop-yield insurance protects the expected revenue due to unexpected yields, which is the volume of a crop’s harvest. Crop-revenue insurance covers expected revenue from loss owing to market fluctuations of crop selling prices. Both types of insurance are a means to aid in disaster recovery for producers due to unexpected events.
Stability in Income: It protects the farmers against losses caused by crop failure. It acts like a tool that allows farmers to manage their yield and price risks.
Minimal Debts: Farmers are able to repay their loans even during the time of crop failure with the support of the right insurance partner.
Technological Advancement: Insurance companies work with Agri platforms that use IOT to enhance agriculture practices and reduce farmers’ losses. This helps farmers to understand the latest technological advancements and improve their crop production.
Yield Protection: Crop Insurance protects farmers against a production loss for crops. It also offers preventive planting and replant security.
Provides Awareness: Insurance companies offer awareness campaigns to help farmers understand the effect of natural calamities and protect their farms.
As with any business, agricultural producers face risks of all kinds. However, the two most significant risks facing farmers are yield and price. Fortunately, producers can buy insurance that reduces their exposure to low yields or prices. Unavoidable risks protected by crop insurance include:
Since the 1930s, crop insurance has been available to agricultural producers in the United States. However, it was in the 1990s that the United States government promoted crop insurance by offering new products and more insurance premium subsidies.
It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options
If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.
Contact us today to help you with multiple options to choose from.