CROP INSURANCE AND ITS BENEFIT TO FARMERS
Crop insurance, the most popular risk management tool for farmers. There are many benefits of grain insurance as it provides farmers with financial stability and also helps them in enhancing their quality and quantity that they produce. It enables them to supply food and fibre to our country despite the different weather conditions and challenges that may hamper their business.
What is Crop Insurance?
Nowadays, crop insurance is gaining importance because it protects farmers from all the crops, revenue and properties losses. These losses are caused due to natural disasters such as floods, hail, drought, heavy rains, or the due to declines in the prices of agricultural commodities. These policies are purchased by agricultural producers and subsidized by the federal government. Crop insurance has become a necessity for farmers as it is very much cleared after considering the current situation.
Crop-yield insurance: This insurance can be easily available from private insurers. Nowadays, several farmers buy this as hail is a narrow peril that destroys the most important part of a planted field while leaving the rest part undamaged.
Multi-peril crop insurance: This insurance services coverage covers the broad perils of flood, drought, insects, disease and many other calamities. This coverage should be purchased prior to planting crops.
Crop-revenue insurance protects farmers from declines in both crop prices and yields. This coverage combines yield protection and price protection. This coverage protects farmers against potential loss in revenue that is caused because of both low yields or change in market price. There are many new technologies that are invented every year to help farmers to enhance their production and productivity. These new technologies require a lot of investment. Since the new investments are risky, so it is essential for farmers to insure new technologies as it will provide coverage in case if your technologies fail. The insurance packages help the farmer to try new technologies.
Advantages of Crop Insurance
Farmers who take business insurance coverages protect their crop from unforeseen setbacks. These policies help farmers to fight poverty in unforeseen setbacks situations. It is important for every farmer to get their crop insured because the majority of the farmer’s livelihood is dependent on the quality and quantity of the yield that they produce. So, these coverages protect farmers against losses caused by crop failure and thereby ensures stability in farm income.
- Stability in Income: This coverage protects farmers against losses caused by crop failure. It acts as a tool that allows farmers to manage their yield and price risks.
- Technological Advancement: There are many new technologies that are invented every year to help farmers to enhance their production and productivity. The insurance companies use techniques to increase yields, reduced costs and other efficiencies.
- Minimal Debts: The crop insurances policies helps farmers to give back their loans to the lenders. Make sure to choose the reliable insurance agent if you want maximum support at the time of natural calamities.
- Provides Awareness: The good insurance companies run awareness campaigns to help farmers understand the effect of natural calamities and also help them to understand the latest technologies to protect their farms.
So, with the help of crop insurance, poor farmers with limited means get benefited by becoming self-sufficient. They will also be able to raise their investment in crops by producing get better quality as the insurance companies help them in understanding data, technology and financial services related to climate. The most important benefits of buying agriculture insurance are that it helps farmers to get peace of mind.