A guide to how crop insurance works

by Maryann Ross Levanti 10/09/2022

Local crops provide food and resources. Crops have significant importance to society; therefore, insurance for crops is offered by the federal government for protection. Check out this guide if you would like to learn more about crop insurance and how it protects farmers. 

What is crop insurance?

Crop insurance offers farmers protection in the case of damage and loss to crops. It covers natural disasters such as extreme storms and drought. It also covers revenue loss due to extreme price swings in the market. 

Multiple peril crop insurance protects farmers from a list of perils, while some specific policy types, such as crop hail insurance, are more specialized coverage. Depending on the region where the farm is located, other coverage might be necessary.

Cost of crop insurance

Terms and rates of crop insurance are determined by the Federal Crop Insurance Corporation (FCIC). This keeps prices consistent across the industry. Due to this, private insurance companies compete through providing great customer service, and by providing additional products and services to clients.

Who’s in the market for crop insurance coverage?

Agricultural producers and farmers are the primary purchasers of crop insurance. It’s mostly geared towards farms growing wheat, cotton, corn and soybeans, but other crops are included as well.

Crop insurance is essential to the agricultural industry for providing protection in case of unforeseen perils. With this coverage, farmers can have greater peace of mind about protecting their


About the Author
Author

Maryann Ross Levanti

I'm Maryann Ross Levanti, looking forward to meeting you and helping you find your new home and/or sell your current one. I've lived in Fairfield County the majority of my life - grew up in Westport, (Coleytown, Coleytown, Staples), undergrad at UPenn, masters from Edinburgh, Scotland. I'm ABR and GRI certified, and hold a broker's license in real estate, as well as a provisional appraiser license. Additionally, I am the exclusive agent for CCO Habitats - a HOBI award winning building company which regularly offers new construction homes as well as renovated homes to the market in Westport. In my 20 plus years of selling homes, I've learned many things - among them - the customer is not always right. Nor am I. However, if we work together we have a much better chance of being correct and either getting your home sold or finding the home that best suits your needs. Yes, I'm outspoken and opinionated. But anyone with a license can open a door - wouldn't you rather have doors opened by someone who actually tells you the truth and is willing to put her years of experience and knowledge into working 24/7 for you to help you understand what you're getting into? You may not always like what you hear, and there are no crystal balls in this business. But I believe an informed decision is always better. Hopefully you do too! As a yearly winner of the Connecticut Five Star Realtor award and frequently repeated recipient of customer service awards indicate; my priority is you, my client, and my clients appreciate it. Put my local knowledge, professional skills, ethics and dedication to work for you - give me a call 203.984.5157.