Crop insurance is invaluable when pests, natural disasters, or weak markets threaten your profits. A comprehensive policy can keep a struggling farm alive. Unfortunately, many farmers don’t take advantage of the available plans because of the harmful myths surrounding them. This guide debunks some of these common misconceptions.

What Are Common Myths About Crop Insurance?

1. It Only Covers a Few Types of Crops

Many farmers believe that insurance only covers mainstream crops like corn, wheat, and soybeans. However, the many policies available cover a wide variety of crops. 

There are over 300 specialty crops alone, including coffee, trees, flowers, and nursery plants. Carriers don’t require a minimum number of acres to qualify. Whether you lose a multiacre apple arbor or a single strawberry field, a customized insurance plan will cover your needs.

2. Disaster Insurance Is Better

Disaster insurance covers losses suffered from a disaster, such as a fire or flood. However, this isn’t the same as crop insurance. Crop plans cover natural disasters, as well as plant diseases and insect damage. These problems might not qualify under a disaster insurance plan. Crop coverage also helps you during droughts or in the aftermath of a disaster if you’re unable to plant new crops. 

Crop revenue insurance is an essential component of your policy. If a crop’s price has dropped significantly, your insurer can compensate you until the market recovers. They’ll compare current earnings to the previous year’s profits. 

3. Only Total Losses Qualify

You don’t have to lose your entire harvest to receive a payout. As long as you lose at least 25% of your crops or 25% of the estimated value of the crops, you’ll be compensated. The Risk Management Agency of the U.S. Department of Agriculture paid out roughly $8.1 billion last year to farmers suffering losses.

There’s no replacement for the convenience that crop insurance provides, and the team at Nebraska Crop Insurance Agency Inc. will ensure you receive a policy that meets your unique needs. Based in Beatrice, NE, this family-owned and -operated insurance agency has helped customers find coverage since 1981. They offer a variety of plans, including agricultural and multi-peril crop insurance. Visit their website to learn more, or call (402) 223-2694 to speak with an agent.