There are three different types of coverage offered by crop insurance: crop-hail coverage, multiple peril crop coverage, and crop revenue coverage. You may elect to purchase any or all of these coverage types.
Crop-hail insurance is not part of the Federal Crop Insurance Program, so it must be purchased through a private insurer. This can prove to be a very valuable coverage option for farmers who live in areas that frequently experience hailstorms. This coverage typically comes with a very low deductible because hail has the potential to destroy crops in one part of your farm while leaving other parts unscathed.
Crop-hail insurance can be purchased at any point in the growing season.
Multiple Peril Crop Insurance (MPCI)
Most farmers who opt for crop insurance purchase MPCI. This insurance is part of the Federal Crop Insurance Program and is therefore government regulated. It is designed to cover crop losses related to natural events including:
- Destructive weather
- Insect Damage
MPCI is available for more than 100 different types of crops, but some crops are only covered in certain geographical areas. An independent insurance agent can help you review your agricultural products to determine whether you are able to get MPCI coverage for them.
MPCI must be purchased each growing season before your crops are planted.
Crop Revenue Insurance
Some years your farm may not produce as much as others. Crop revenue insurance can provide compensation in years that you have a low yield or when the market price of your crop is significantly lower than usual. This coverage was strengthened by the 2014 Farm Bill.
A local independent insurance agent can help you review your various options so that you can get the coverage that is right for your farm.