Agricultural insurance protects farmers against the vagaries of weather and pricing that would otherwise make running their business untenable. It gives them a certain amount of security when facing factors over which they have little control. Below are answers to some of the most frequently asked questions about agricultural insurance.
Top Agricultural Insurance FAQ
What is agricultural insurance?
Agricultural insurance is an umbrella term comprising several types of coverage that protect farmers against unexpected losses, including crop damage caused by hailstorms, drought, frost, wildlife, insects, and fires. It also covers losses due to unexpected drops in prices caused by market fluctuations.
Why does agricultural insurance require government support?
Federal taxes help subsidize crop insurance because agricultural losses tend to be widespread in a geographic region. A single event — whether fire, flood, or hailstorm — can damage wide swaths of crops, causing millions of dollars in losses and affecting supply. For this reason, crop loss is a matter of national interest. Extensive natural disasters can also exceed the scope that a private insurer could possibly cover without government assistance.
Does agricultural insurance cover agritourism?
Agritourism is any activity designed to draw visitors to your farm for entertainment. Examples include corn mazes, hay rides, U-pick operations, and farmsteads partly converted into inns. These may require policies separate from crop insurance. For instance, a petting zoo or dude ranch would require equine insurance, while any activity that attracts customers onto your property necessitates premises liability coverage.
Should farmers continue to care for damaged crops after filing a claim?
Yes, it’s the farmer's responsibility to care for their crops using generally recognized practices to minimize the dollar value of their agricultural losses. Failure to water, fertilize, and otherwise maintain crops after a drought damage claim can result in forfeiture of claims payment.
For expert guidance putting together an agricultural insurance policy, contact Nebraska Crop Insurance Agency in Beatrice, NE. They’ve served clients in and around Lancaster and Gage Counties since 1981, specializing in hail damage coverage and multi-peril crop insurance. They pride themselves on offering service that is quick, reliable, trustworthy, and friendly. Visit them online to view a full list of services or call (402) 223-2694 to request a quote.