Crop insurance has existed since the 1800s to protect farmers from losses brought by natural disasters.
Similar to health and life insurance, crop insurance gives financial assistance to farmers whose crops have been affected by hailstorms, floods, drought, pests, fire, wildlife, diseases, and many others.
Crop insurances have much to offer to those who take the time to learn and apply for them. If you’re unsure about getting crop insurance, you may want to consider the five reasons you need it.
1. You Have a Farming Business
Unlike those who don’t have a farming business, people who have a farming business need crop insurance.
Farmers and ranchers are prone to losses due to natural calamities and disasters. Having crop insurance will definitely help them minimize their losses brought about by natural disasters.
Crop insurance can benefit you if you’re part of a farming business. You can have your business’s risk evaluated in order to determine the amount of loss you can claim if something happens to your crops.
2. You Want to Secure Your Workers
If you have employees working on your farm, they must be taken care of in the event that your crops are damaged or destroyed by a natural disaster.
Crop insurance can be an excellent instrument to help you secure them as you’ll be able to compensate them if they lose their jobs due to crop damage.
In addition, crop insurance can also help you secure your family. If your family depends on the income your farm generates to sustain their needs, having crop insurance can be a way to make sure they will have a steady source of income if your farm suffers a loss due to a natural disaster.
3. Crop Insurance Covers Farm Equipment
Farm equipment can get damaged or destroyed due to the elements. This can cost you thousands, if not hundreds of thousands, of dollars to replace.
If your farm is protected by crop insurance, you can have your farm equipment included in the coverage.
You won’t have to worry about replacing or repairing your farm equipment. All you have to do is contact your insurance company, and they’ll take care of it.
4. You Can Protect Your Livestock
Livestock is another farm asset that can incur losses due to a natural disaster. Fortunately, crop insurance covers them like it does farm equipment and machinery.
Depending on your crop insurance of choice, you can insure your high-value animals. It doesn’t matter what animals you are raising on your farm since sheep, pigs, cattle, and other farm animals can get insurance under farm animal insurance.
You should also note that there are herd and individual insurance for your livestock. The terms may differ depending on the insurance provider, so make sure you ask the right questions and read the fine print before agreeing to anything.
The Bottom Line
It’s no secret that crop insurance can be beneficial for farmers and ranchers. Once you know the benefits you can get from having crop insurance, you should be motivated to look for a reliable insurance provider that can give you the coverage you need.
Crop Insurance Services by AMS is one example. We are market leaders in the agriculture insurance industry, dedicated to providing best-in-class crop insurance to our farmer clients.
We provide crop insurance in California. To find out more about how we can help you protect your farm from unexpected losses, give us a call today.
