Farming is a rewarding way to make a living—but it can be hard to predict. There are many natural and commercial challenges facing those in the agricultural industry, and just one disaster has the potential to put a farm and its profits in jeopardy. Fortunately, crop insurance offers effective protection against devastating losses. Here are a few of the top reasons this kind of coverage is a necessary risk management tool for farmers.

Why You Need Crop Insurance

1. Protection From Crop Loss 

Multi-peril crop insurance is designed to help mitigate any financial burden incurred from crop damage due to adverse weather conditions, insect infestations, and disease. Unfortunately, there’s no way of knowing what Mother Nature may bring, and extreme temperatures, drought, flooding, and hail all have the potential to destroy crops. Likewise, insects and disease can spread through a crop field in no time, resulting in a loss of quality.

2. Financial Security

Crop revenue insurance helps protect farmers from significant profit loss caused by a decline in market prices. Price fluctuations can make it difficult to generate a steady income and keep a farm running successfully. With proper coverage, farmers will receive compensation when their average revenue drops below a certain threshold, providing the funds they need to maintain their operations.

3. Loan Collateral 

Having crop insurance also makes it much easier for farmers to get approved for a loan. Operating a farm efficiently requires a great deal of costly equipment and machinery, and it can be difficult to make such a big investment without financing. However, a crop insurance policy can be used as collateral on a loan, allowing farmers to obtain the finances necessary to purchase new equipment as needed.

If you have yet to purchase crop insurance this year, reach out to Nebraska Crop Insurance Agency, Inc. in Beatrice, NE. Backed by nearly 40 years of experience, they’re familiar with the local agricultural industry and the risks that are specific to this area. They’ll help you determine which type of coverage is most suitable for your farm’s unique needs and provide you with a reliable policy. Call (402) 223-2694 to request a quote, or visit their website to learn more about the services they offer.