Crop Insurance: Protect Your Income

An important part of coverage for your farm is crop insurance. Each season you count on the income from the grain you are producing. However, there is one factor beyond our control…the weather! Consequently, you should consider this coverage, which protects the producer of the crop from natural disasters such as the following:

  • Drought
  • Flooding or excess moisture
  • Freezing
  • Not being able to plant the crop in a timely manner

With this element of unpredictability, the added income protection provides a safety net. Let’s look at the different aspects of crop insurance.

Why crop insurance?

The purpose of a crop insurance policy is to insure the production of the crop will equal at least a chosen percentage of the 10 year average. This is called the APH (Actual Production History).  Depending upon how many acres the producer has in a section or county depends on how the units can be structured.  Then the owner of the policy can insure against the amount of bushels yielded or the amount of revenue obtained.

Who should consider it?

Crop insurance is for any person or entity that has an interest in growing crops. Furthermore, it is offered on an equal opportunity basis to agricultural producers in the United States. This would be for farmers that fully own their own land. It is also an option in the situation of crop sharing, where there is a 50/50 split between the land owner and the actual farmer.  For this reason, if a person has an interest in the crop that will be planted, they can sign up for a policy that renews every year unless they cancel the plan.

What can be insured?

There are many different crops that can be insured:

  • Corn
  • Soybeans
  • Hay
  • Barley
  • Rice
  • Apples
  • Oranges

What are the deadlines?

Sign up dates in Ohio are very specific.

  • Corn and soybeans are completed in the middle of March.
  • Wheat is done at the end of September.

What does it cost?

Crop insurance is like other insurance: the more coverage a person elects, the higher the premium.  In contrast to other insurance policies like home and auto insurance, crop insurance premiums are the same no matter what company you chose to use. The rates are established by the Federal Crop Insurance Corporation (FCIC).

What is excluded from the policy?

Human error is not covered by crop insurance!  Here are two examples:

  1. Applying the wrong spray and killing a crop.
  2. A vehicle entering a field from an accident and starting the field on fire.

There are many different companies and agents who sell crop insurance.  When looking for an agent, consider their knowledge of the insurance, service to you, and the relationship built. Our trusted insurance professionals have extensive experience with farm insurance and even more, they actively farm.

Crop insurance is only one important piece to your farm insurance. Therefore, there are several other things you need to know about proper coverage. Read our previous blog to make sure you have considered all the available options.