Dumas, Texas
200 E First St.
Dumas, TX 79029
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4 FAQ About Crop Insurance September 24, 2019

Dumas, Moore
4 FAQ About Crop Insurance, Dumas, Texas

Agriculture is an inherently unreliable industry, but with crop insurance, farmers can maintain some sense of security. Backed by the federal government, these policies provide a safety net for the people who produce our nation’s crops. If you own a farm or plan on buying one soon, you may be wondering precisely how crop insurance works. Here, you can learn all about this critical risk management tool. 

4 Common Questions About Crop Insurance 

Why is this insurance backed by the government?

Most kinds of insurance remain affordable because the risk is spread among a vast number of policyholders, and it’s highly unlikely that all of them will file a claim at the same time. Because a single storm, flood, or drought can cause catastrophic losses in a concentrated area, though, crops are especially costly to insure. As such, the U.S. Department of Agriculture has partnered with private insurers to provide affordable policies to everyone in the industry by regulating premiums. 

Which crops are covered?

Initially, crop insurance covered just five commodities. As the agricultural industry grew, though, coverage expanded. Today, more than 130 commodities are covered, and every eligible farm is entitled to buy a policy, regardless of the size of the operation. Corn, wheat, and soybeans account for the most acreage protected by crop policies, but this is primarily because they make up the most acreage that’s farmed today. 

What kinds of covered events does a typical policy cover?

crop insuranceThere are two primary kinds of crop insurance: multiple peril (MPCI) and crop-hail. MPCI covers low yields and losses caused by drought, disease, destructive weather, fire, flooding, and pests. Crop-hail insurance, which is not part of the Federal Crop Insurance Program, supplements MCPI by covering damage caused by hail in areas where such storms are especially common. A third, less common type of coverage called crop revenue insurance protects farmers when yields are less than ideal or market conditions warrant low prices. 

How can I purchase it?

A reputable insurance agent can help you find an MPCI policy that meets your needs. An agent will shop around to find the most affordable coverage and then review its terms closely to ensure it includes everything your farm needs to continue to thrive. Make sure to work with someone who has extensive experience buying crop insurance because it’s so different from other kinds of coverage. 


For comprehensive crop insurance, turn to Stidham Insurance AgencyBased in Moore County, TX, this family-owned and -operated company has been in business for more than 45 years. An independent agency, they work with many national carriers, which allows them to provide affordable policies tailored to meet their clients’ needs. Protecting individuals and businesses throughout the Texas Panhandle, they offer everything from car insurance to agriculture insurance. To request a quote, reach out online or call (806) 935-6888. 

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