For farmers, crops are more than just property to oversee—they’re also a means of earning a living and building a legacy. Therefore, it’s imperative that these crops are protected with a dedicated insurance policy. If you’re not familiar with the details of crop insurance, use the following guide as a debriefing.

A Brief Guide to Crop Insurance

What Is Crop Insurance?

Whether you grow soybeans, corn or potatoes, your plants won’t be protected by your homeowners or business insurance policies. Farmers also need to add crop insurance to their policy bundle to safeguard their operations. Since so much of the global economy is based on the agricultural industry, crop insurance is important to both producers and consumers alike.

Why Do Farmers Need It?

For farmers, the most prominent threat to business is also the least predictable: the weather. It only takes a few hours for storm clouds to roll in, drowning crops in extensive rainfall, or setting fire to the field with a lightning strike. On the other hand, the absence of rainfall can also lead to brush fires, wiping out a season’s earnings in less than a day.

Crop insurance protects against these natural disasters, as well as damage from frost, pests, and diseases. This way, when the plants are no longer suitable for harvesting, farmers can file a claim and get the funds they need to replenish their crops. 

How Does It Work?

Crop insurance must be purchased by farmers for the crop year ahead. The insurance provider will agree to cover a farmer’s losses from unexpected events after their deductible is met. The deductible is a sum of money that the farmer is responsible for paying out of pocket, and is a fraction of what the company is willing to provide. 

The specific crop insurance policy you need will depend on where your farm is located and what plants you’re growing. For example, if your town is prone to hail storms, you might need to secure crop hail insurance. This year-long policy must be bought from a private insurer and is crucial for crops that grow above-ground, such as corn.

Other farmers might choose multi-peril crop insurance, which is more of an umbrella policy that protects against a number of threats, including scarce harvests and plummeting market prices. This government-backed policy must be purchased before your crops are even planted.

If you’re looking for a reliable crop insurance policy to protect your farm, reach out to Stidham Insurance Agency of Dumas, TX. This independent insurance provider will be happy to guide you to the coverage that meets your needs, so you can continue producing throughout the year. They also offer home and auto policies, as well as boat and RV coverage. To learn more about their offerings for farmers throughout the Texas Panhandle, visit the website. You can also call (806) 935-6888 to arrange for a free consultation.