It’s that time of the year when farmers have to make the big decision about crop insurance. It’s not a question of if we’re going to buy it for most of us, it’s a question of how much coverage we’re going to purchase. More than eighty-six percent of insurable land in the United States is protected by the Federal Crop Insurance program according to the Crop Insurance in American website.
The Drought of 2012 was a record setting year for crop insurance payments to farmers. The top six states (Illinois, Iowa, Kansas, Nebraska, Texas and South Dakota) have all received over $1 billion as a result of crop damage. Without crop insurance, many farmers would have been in a lot of financial trouble due to very low yields last year.
Currently more than 60 percent of the continental United States is still in some stage of drought, so farmers will be looking at their crop insurance very closely this year to make sure they have the proper coverage put into place.
Having grown up in our family business in which crop insurance is the largest area of business, I learned a lot about it, but it can still be confusing at times. Here is a description of the types of crop insurance directly from the Crop Insurance in America website.
HOW IT WORKS
Multiple Peril Crop Insurance (MPCI)
March 15th is the deadline to sign up for crop insurance to protect your spring crops. Some examples of spring crops that are grown in our area (SW Iowa) are corn, soybeans and grain sorghum. On our farm, we’ve planted just corn for the past few years.
So, basically by March 15th farmers have to make a big decision on insuring their crops. They have to decide how much risk they are willing to take and how much protection they want to buy from their crop insurance company. The agents at The Home Agency are excellent at helping you understand how to use your crop insurance as a marketing tool!
If you have any questions, please leave them in the comments section below and I’ll get back to you with an answer! Thanks!