Crop Insurance 101: Everything You Need To Know

Categories: Payments

Are you looking for information on crop insurance and all associated with it? We’ve got you covered. Keep reading if you are interested. Through this article, we’ll provide you with everything that you must know about this topic.

What exactly is Crop Insurance?

Crop insurance is one type of risk-management program that aims to safeguard farmers from the loss of crops due to accidents, disasters, and other such events. It comes in two types: multiple peril and crop-hail. The prior is provided by the government, while the latter is offered by the private sector.

Multiple Peril Crop Insurance

As we said before, Multiple Peril Crop Insurance, commonly referred to as MPCI, is provided by the federal government to farmers to ensure their safety. You won’t have to worry if you insure yourself using this program as it protects your crops from flood, fire, and destructive weather. However, this insurance can only be utilized on specific row crops including cotton, wheat and soybeans.

Crop-Hail Insurance

Crop-hail insurance can be a great option if you’re a farmer who makes money from crops that aren’t covered under MPCI. This insurance is also offered through the private sector. Unlike what its name suggests the crop-hail insurance does not only cover losses caused by hail. It also protects farmers from damage to their row crops and fruit crops caused by fire, lightning, wind or theft, as well as any other kind of malicious activity.

What is the cost of Crop Insurance?

The Federal Crop Insurance Corp (FCIC) regulates rates for insurance. These rates vary between $47 and $89 per month based on the location you reside in and the amount of land you own. This means that the cost of insurance is the same no matter which insurance provider you choose. However, the quality of service and perks given by these companies can differ from one another. Therefore, when selecting an insurance company to insure your crops, be sure you consider these factors and compare them before deciding.

Tips to Choose the Best Crop Insurance Provider

After reading our explanation you may be considering getting an insurance policy for your crop. There are many insurance agencies offering this service. So, it can be confusing to determine which one to choose. That’s understandable but fret no more. Here are some things you need to be aware of when choosing the ideal crop insurance provider to protect your farm.

1. Knowledge

Agriculture policies and regulations change constantly. Therefore, picking an insurance agent that is well-aware of these changes is crucial. They will also be able to provide a piece of customized advice to meet your specific insurance needs since they are knowledgeable about the current scenario.

2. Customer Service

We have already said that the majority of agencies are comparable in terms of the level of customer service they offer. You’re looking for insurance that puts an emphasis on customer service. This is something to keep in mind when choosing an agent.

3. Reviews

The most reliable way to determine whether you can trust an agency is to look at previous clients. So, take a look at the comments left by previous and current customers when selecting an insurance agent. To be sure, an insurance company that garners many positive reviews and that we believe is worth trying is Scott Colville Crop Insurance. To know more about their company and services, visit their homepage.

Let’s Sum It All Up

Many farmers don’t see the significance of obtaining insurance for their crops because they believe it’s just an extra expense. But they do not understand that they will benefit from it in the long run. We hope more people will realize the advantages of this risk-management program by discussing it further.