What You Need to Know About Crop Insurance Plans
Crop insurance plans are a way for farmers to protect their assets from natural disasters. Just like every other type of insurance, it’s important to have a plan in case something happens to your assets. In this article, we are going to take a look at some of the important parts of crop insurance plans.
The first thing that you need to understand is that this insurance is backed by the federal government. Crops are a vital resource to our country, which is why the government takes an active role in protecting them.
Crop-hail insurance is a type of coverage that is not backed by the government. It exists to give protection to the crops that the government cannot protect. It is also used for people that fall under the threshold for federal coverage.
Yield-based insurance is the coverage that will pay you based on the losses you suffer compared to your historical amounts. This is important because if you have a bad year where a lot of crops don’t survive, you will need help getting back to normal.
Overall, there are a few different crop insurance plans. If you are a farmer it’s important to know your options.