David City, Nebraska
594 N 4th St.
David City, NE 68632
(402) 367-3177

How Crop Insurance Protects You September 13, 2018

David City, Butler
How Crop Insurance Protects You, David City, Nebraska

As a farmer,  your livelihood depends on your harvest at the end of the season. If your crops aren’t what you expected or if market prices have decreased, you might be unable to cover costs for seeds and farming equipment. That’s where crop insurance comes in. For many farms, these policies are integral for keeping them alive, especially during years of drought. First State Insurance Agency explains why farm insurance is so important.

How Crop Insurance Works

If crops yield less than expected, the right insurance policy will provide funding to make up for lost income. However, there may be other reasons why revenue is lacking. For instance, market prices may be less than they have been in past years, which means your harvest would be less valuable. In this case, price coverage can close the gap.

crop insurancePrice coverage works by looking at your actual production history as well as market prices coming from CME Group futures, and these two numbers will be used to calculate revenue if it falls short during a harvest. At this point, you will receive an indemnity payment, which will make up the difference between the price anticipated and your earnings.

The Role of Government Subsidies

Unlike auto or homeowners insurance, you don’t file one crop insurance claim as incidents happen; in many instances, multiple claims are made concurrently, which means that the insurance company assumes far more risk. To ensure policies remain reasonably priced, the government offers subsidies on premiums. That makes farm insurance more accessible to the people who need it, and it helps keeps smaller farms in business.

A reliable crop insurance policy helps you plan for the unexpected. First State Insurance Agency proudly supports farmers and other residents of Nebraska to ensure they can access the proper support during their times of need. Speak to an agent and request a quote by calling (402) 979-7585. You can also visit them online for more information on the Nebraska locations.

Other Announcements, Events and Deals from First State Insurance Agency
How to File a Claim After a Spring Storm, David City, Nebraska
Spring has arrived in Nebraska, which means that thunderstorm and tornado season has begun as well. While you hope winds, hail, and lightning won’t affect your house, your homeo...read more
5 Types of Auto Insurance Your Policy Should Include, David City, Nebraska
Most states legally require drivers to carry some form of auto insurance. However, when you start shopping for coverage, you will quickly find there are a number of options available...read more
What Kind of Insurance Does a Small Business Need?, David City, Nebraska
Every small business faces a number of potential threats, from weather and fire to lawsuits and theft. To protect your company and give you peace of mind, you need a busine...read more
3 Aspects to Consider When Comparing Insurance Quotes, David City, Nebraska
Your home insurance policy protects your most valuable asset, while also extending an umbrella of coverage over every aspect of your life. Whether you’re buying a home or it’s time t...read more
Frequently Asked Questions About Homeowners Insurance, David City, Nebraska
Your house is likely one of your most valuable assets. Protect it with homeowners insurance. If you are unsure what that entails, the guide below offers a closer look at wh...read more