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United States

What is crop insurance?

Crop insurance is coverage that protects against the loss of an agricultural producer’s crops because of a natural disaster or declining prices. Crop insurance is regulated by the federal government, sold and serviced by crop insurance companies, and provides benefits to farmers and ranchers. Agricultural professionals face many risks, such as fire, insects, freeze, drought, flood, wildlife, and disease. This type of insurance offers protection against these natural disaster-related losses, as well as the loss of revenue when agricultural prices are on the decline. Crop insurance provides prompt financial assistance because these disasters often strike without warning. By combining the efficient private sector with the authority of the federal government, the crop insurance program is succeeding throughout the country.


Learn more about crop insurance

When do I need to be aware of crop insurance?

An example of someone who should know about crop insurance is a farmer. These professionals spend so much time and money cultivating crops for the livelihood of others, but the job itself is their livelihood as well. When a farmer experiences a loss, crop insurance steps in to financially make up for that loss, allowing the farmer an income along with the ability to recover and begin again.

What is important to know about crop insurance?

Crop insurance is a safety net for all the farmers and agricultural workers in the United States. There are three types of crop insurance with different features these professionals should be aware of:

  • Multiple peril crop insurance considers the specific crop of a farmer when determining the cost of insurance and the insurer payout amount, though not everything is covered in every area.
  • Crop-hail insurance is for farmers in areas of the country that see a consistent amount of hail each year, but it isn’t part of the federal program, so farmers will need to seek it out in private insurers.
  • Crop revenue insurance helps farmers when crop prices are low or a farmer experiences a lower yield than usual, regardless of the reason for it.