Crop insurance in America can trace it roots all the way back to 1880, when private insurance companies first sold policies to protect farmers against the effects of hail storms. These crop-hail policies are still sold today by crop insurance companies and are regulated by individual state insurance departments. In 2018, farmers spent $980 million on crop-hail insurance to protect $36 billion worth of crops.
In addition, farmers may also purchase Federal crop insurance, also known as multi-peril crop insurance, a risk management tool that protects against the loss of their crops due to natural disasters such as drought, freezes, floods, fire, insects, disease and wildlife, or the loss of revenue due to a decline in price. This form of crop insurance is federally supported and regulated and is sold and serviced by private-sector crop insurance companies and agents.
Crop insurance is essential to our rural economy and in helping to preserve our farmer’s production capacity. At Connealy Insurance we help our producers design affordable risk management plans by assessing risks and helping mitigates those risks. Each of our producers also meet the standards of “good farming practices” which enables them to be eligible for payments when incurring losses. There are two main types of crop insurance available to our farmers: Multiple Peril Crop Insurance (MPCI) and Crop-Hail.
Multiple Peril Crop Insurance (MPCI)
MPCI policies must be purchased prior to planting and cover loss of crop yields from all types of natural causes including drought, excessive moisture, freeze, and disease. Newer coverage options combine yield protection and price protection to guard farmers against potential loss in revenue, whether due to low yields or changes in market price.
Crop-Hail policies are not part of the Federal Crop Insurance Program. Many farmers purchase Crop-Hail coverage because hail has the unique ability to totally destroy a significant part of a planted field while leaving the rest undamaged. In areas of the country where hail is a frequent event, farmers often purchase a Crop-Hail policy to protect high-yielding crops. Unlike MPCI, a Crop-Hail policy can be purchased at any time during the growing season.
Contact us today to request your free insurance review and quote.