When your livelihood depends on what you can coax to grow out of the ground, you are at the mercy of fortune. Rains can fall too hard or not at all. The temperature can fluctuate wildly. In short, you face a lot of uncertainty. However, you can relieve some of this stress with crop insurance. Below, find out about the protections it offers.

Crops vs. Commodities

A crop is any plant farmers cultivate for food or human use. These include fruits, grains, nuts, vegetables, textile plants, and more. Farmers grow them and sell them to markets or to wholesalers who sell them to markets.

A commodity crop, on the other hand, is a crop that can be traded. It is non-perishable, easy to store, and easy to transport. Also, one unit is virtually identical to the next. The five major commodity crops are cotton, wheat, corn, soybeans, and rice. In many cases, "crop insurance" might actually be called commodity insurance, since some types of crops are not insurable.

How Crop Insurance Works

There are three common types of crop coverage. The first is called Multiperil Crop Insurance (MPCI). It pays for losses caused by drought, disease, fire, floods, insects, and weather. Cost is tied to the crop value and farmers must buy it before a yearly deadline to qualify. Crop-hail insurance, on the other hand, has no deadline and a low deductible, but only covers losses due to hailstorms. Finally, crop revenue insurance pays out when a farmer suffers revenue losses due to unexpected price decreases.

In general, farmers purchase crop insurance to enjoy a bit of stability and a sense of certainty in a business that, while deeply important to them, can be a fair-weathered friend.

To discuss your crop insurance options with a friendly, experienced agent, contact Fritch Insurance in Beatrice, NE. They've been helping clients in and around Gage County find affordable coverage for nearly two decades. They specialize in crop and farm insurance, but can also help you with home, business, and auto insurance. Visit their website to view their list of carriers or call (402) 223-3312 to request a quote.