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As a farmer, your crop yield is at the mercy of climate and weather. However, by playing it safe, you can protect your income and investment with crop insurance. If you are not currently covered, Hummel Insurance Services in Oakland, IA, explains more about the coverage and what type of protection it offers.

What Is Crop Insurance?

Crop insurance is a risk management tool that farmers and ranchers purchase from a private insurer to protect the value of their harvest in the event of misfortune. Because so many factors contribute to a successful crop yield and these factors are all unpredictable, coverage provides owners of agribusinesses some security and peace of mind that they won't be ruined financially if something goes wrong. Some available policies cover over 100 types of crops. If the farmer suffers a loss, they receive an indemnity check that returns a portion of that amount.

What Does Crop Insurance Cover?

Crop insurance in Oakland, IAThe insurance covers two primary categories of risk: loss of crops and revenue. The first pays for damaged or destroyed goods due to natural disasters such as hailstorms, frost, floods, drought, or insects. The second category protects growers against the loss of revenue due to market forces such as a decline in commodity prices.

For instance, in certain regions of the U.S., corn prices dropped from over $8 to less than $4 per bushel between September 2012 and May 2015. A farmer who is dependent on higher sales prices to cover expenses could face ruin when these numbers are slashed in half. As such, both types of coverage are essential to prevent catastrophic losses and keep the farm afloat during hard times.

Crop insurance is an indispensable financial tool that covers nearly all the hazards you face when your livelihood depends on the harvest. For invaluable advice, turn to Hummel Insurance Services in Oakland, IA. Their seasoned insurance agents have been serving the region since the company's founding in 1944. Their team stays up-to-date on the industry and offers a broad selection of policies and competitive rates. Visit the website to request a quote, or call (712) 482-6424 to discuss your coverage options.

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