Protect Your Farm and Ranch

Crop insurance must be purchased each growing season by the deadlines established by the USDA.

There are two main types of crop insurance: hail and multi-peril insurance. Hail insurance only provides coverage for losses due to hail damage. Multi-peril insurance provides coverage for certain types of covered losses, including losses caused by drought, flood, or other perils. In some cases, these policies also cover losses due to a significant drop in price.

The farmer pays an insurance premium for a specific crop on a specific acreage on their property. Similar to a deductible, most policies require farmers to self-insure a portion of the risk. Experts indicate that most farmers purchase policies that cover between 65%-75% of their losses. If the farmer has losses exceeding their self-insured portion, the insurance company will pay up to the percentage insured. For example, if a farmer were to lose 50% of their crop and had 75% coverage, the insurance company would pay up to 25% of the total insured amount.

Insurance companies calculate a farmer's loss based on the type of policy purchased. Income-based policies consider 5-10 years of income data and the crop price at the season's start. Production-based policies review the farm's production over the previous 5-10 years.

No, some crop insurance may be purchased through the Federal Crop Insurance Corporation (FCIC) instead of a private company. Farmers should still contact their local crop insurance agent to file a claim.

The farmer should first contact the insurance agent who sold the policy. The agent will explain any policy limitations and the coverage type. The agent will then engage an adjuster, who will work with the farmer to determine the next steps. It is crucial to keep documentation of the loss, including pictures and samples, until confirmation is received in writing to destroy or re-plant crops.