Everything You Need to Know About Crop Insurance
Many farms are not aware that they are likely to be eligible for crop insurance. According to Fb.org, crop insurance is available in all 50 states for over 120 crops for farms of all sizes. This type of insurance is a safety net for farmers. If you do not have crop insurance, there are a few things you need to know that may change your mind about securing some.
If You’re New to Farming There May Be Some Special Perks for You
Those that are designated as new to farming can receive an extra 10% in subsidies from the USDA. Savings on premiums is not the only perk. You can use grower information from the previous farmer if you bought the farm after it was established. You are also eligible for a higher yield substitute.
If You Grow Organic
Crop insurance gives special consideration to the organic farmer. 57 crops have been identified for higher yield coverage for the organic farm. Insurance is now taking into account the higher value and the higher risks involved with organic farming and compensating growers at a more realistic rate.
Mistakes to Avoid
There are several mistakes that you want to avoid, including:
- Waiting until there is a potential problem before securing crop insurance.
- Not understanding your coverage.
- Not keeping good records.
Waiting until there is a problem on the horizon to get coverage is one of the biggest mistakes you can make. Securing insurance early on in the season is the best way to make sure you do not experience any coverage problems.
Do the research. Look into your coverage options, and compare plans, then be sure that you read through your policy. Additionally, keep good records. Keep records about where you got the seed from, the dates on the seed, dates you planted, etc. If you need to make a claim, this information is essential.
Reduce Your Risks
Farming and ranching have a lot of risks that you cannot control. Having crop insurance can reduce the risk that your farm fails because of the risks you cannot control. Learn more about your options and take advantage of this insurance to protect your farm, your finances, and your family’s future.