As we approach the Winter Wheat Crop Insurance deadline on September 30, it’s a good time to review the types of coverage that are available for crops.
In general, Crop Insurance is a farmer’s “safety net” for when their crop yield is lower than expected or when revenue from crops is lower than expected. Inflation and recession are words we’re hearing more frequently in discussions on our U.S.
economy and revenue from crops may be impacted by instabilities. The following are some key things to note about what’s available and what is typically covered.
What is Crop Revenue Protection?
Just as it sounds, Crop Revenue Insurance can help protect farmers from swings in crop pricing – which an unstable economy may create. The base price is set by the Risk Management Agency (RMA) at the beginning of the season, and the harvest price is set at the end of the season. Coverage is typically available to be purchased for every acre you’ve planted.
What is Crop Yield Protection?
Natural “perils” such as hail (which we’ve seen a lot of this recently!), excessive rain, and drought can certainly impact your crop yield. Crop Yield Protection Coverage can protect you in the event of those losses. In addition, coverage for losses due to insects, disease, earthquakes, and fires may also be available.
How does Crop Insurance work?
Crop insurance coverages vary from State-to-State and even County-to-County. Policies must be purchased before deadlines set by the RMA – usually Mid-March for Spring planted cops, and late September for Winter Wheat. The Federal Government will cover an average of 62% of premiums for these coverages but talking with an agent to understand what’s available, when it’s available, and the
premiums you’ll pay is critical.
We’re proud to be able to help farmers understand and acquire these coverages. Please contact our Crop Insurance team to learn more!