A Personalized Plan
There are more than two million farms in the United States, and each one is different. America’s farmers and ranchers raise a wide variety of grains, fruits, vegetables, fiber, and livestock to feed and clothe America.
Each of these farms has a different risk profile, requiring a unique risk management plan.
Some are multi-generational farms with secure lines of credit, while others are brand-new farms.
There are farmers growing row crops, such as corn and soybeans, and there are farmers growing specialty crops, such as fresh produce or nuts. Some farmers and ranchers raise livestock or grow forage for feed.
Even the possibility of disaster is different from farm to farm, ranging from drought to derechos and hail storms to hurricanes.
That’s why crop insurance provides farmers with a personalized plan.
Unlike many other farm programs, crop insurance is not a one-size-fits-all product. Instead, protection is personalized to fit an individual farmer’s risk management needs while considering the type of coverage needed and the crops being grown.
There are thousands of crop insurance options, policies, and products for farmers to choose from.
For example, a farmer growing row crops might choose a Revenue Protection plan that provides protection against a loss of revenue caused by low prices, low yields, or both. On the other hand, a farmer who is growing many different types of vegetables or other specialty crops may choose to purchase Whole Farm Revenue Protection. This policy allows farmers to insure a variety of crops at once.
In both scenarios, farmers receive crop insurance coverage at a discount, but must still pay 30-40% of their premium. The coverage that a farmer chooses determines how much of a discount they receive. If farmers choose to take on more risk through lower crop insurance coverage, then they will receive a smaller discount.
Crop insurance also helps beginning farmers and ranchers take on the challenges of farming by providing them with an additional premium discount.
Farmers then receive assistance only in the event of a verified loss. They must also pay a deductible based on the amount of coverage they have chosen.
In other words, farmers share in the cost of their own safety net, acting as a deterrent to risky behavior.
When purchasing crop insurance prior to planting, farmers work with a trained and licensed private-sector crop insurance agent. The crop insurance agent works to understand the entire picture of the farm, and any potential perils, and then helps the farmer select the appropriate crop insurance coverage.
Crop insurance agents are an essential part of the process. South Carolina agent Ben Tillman became a crop insurance agent because he was passionate about helping farmers.
“With crop insurance, in my experience, it’s more of a personal relationship. It’s not just a business relationship. We try and take a consultative approach with our farmers and make sure they understand exactly how crop insurance works and really be a voice for them.”
By providing a personalized risk management plan, crop insurance acts as a safety net for all American farmers. No wonder crop insurance is trusted by farmers and ranchers in all 50 states.