Product Update

Crop Insurance Discussion Added to Agribusiness Risk and Insurance

This release to Agribusiness Risk and Insurance expands the reference to include crop insurance.

A farmer's livelihood depends on the successful production and subsequent sale of crops and other food products. One severe storm at the worst possible time can wipe out an entire year's crop and, with it, the ability of the farmer to survive the loss. This overview of crop insurance explains the major types of crop-related risks and provides a short history of crop insurance. It also explains the two major types of crop insurance.

Many farmers purchase private crop-hail insurance because hail can easily devastate a farmer's crop. Hail is one of the most damaging weather phenomena every year. Its annual cost runs in the billions of dollars. This article explains private crop-hail insurance basics.

Federal crop insurance protects a farmer against production or revenue losses when a particular insured crop does not meet a preset production guarantee. Federal crop insurance policies also typically provide coverage for other adverse events such as the inability to plant because of unfavorable weather. This section explains the major types of federal crop insurance.

Buying crop insurance is a complex undertaking. This discussion provides practical considerations that can help farmers and their agents in this process.