Crop insurance options for American farmers

Compare protection for the crop and location concerned

Crop insurance should be assessed for the crop, county and farming practice actually used. Different products can address yield, revenue or other defined risks, and the protection available for one enterprise may not fit another. RMA provides tools for finding authorized agents and approved insurance providers. An agent can explain the applicable sales-closing date, coverage options and premium for the farm’s particular production history, rather than relying on a national example that may not apply locally.

Understand the obligations that keep coverage effective

Compare the deductible or uncovered share of a loss, the basis used to calculate any indemnity and the effect of changes in acreage or production practices. Ask which records must be maintained and when acreage, production and damage must be reported. A lender’s requirement for insurance does not ensure that the selected coverage will replace every lost sale or meet the whole loan installment. Include the premium in the operating budget and coordinate any assignment of insurance proceeds with existing credit arrangements before a loss occurs.