And while Iowa State University Extension farm management specialist Steve Johnson told Wallaces Farmer that 89% of all Iowa farmers carry some form of crop insurance, there remain some local farmers who choose to risk their livelihood and their future in exchange for saving a few extra dollars for subsidized peace of mind.
See, when planting for tomorrow, a lot more than seed goes into the ground. Our crops begin an agricultural and nutritional chain reaction that affects every American — even during a pandemic. That’s what makes crop insurance (which you may hear referred to as ag insurance or farm insurance) so important in helping you hedge against unexpected economic and environmental damage.
Do farmers need crop insurance?
In a word, yes. Here’s why:
- Crop insurance can help you mitigate risk despite weather conditions.
- It helps ensure steady cash flow and income stability.
- It helps to introduce the use of new technology to improve crop production.
What kind of crop insurance should I choose?
While MPCI policies must be purchased before planting and cover loss of crop yields from all types of natural causes (like including excessive moisture or drought, freeze, disease, and loss in revenue due to low yields or changes in market pricing), you can purchase a Crop-Hail policy at any time during the growing season.
Isn’t crop insurance expensive?
Crop insurance is actually a great deal — especially when you consider the catastrophic losses you’re guarded against! Here’s why:
- The Risk Management Agency (RMA) sets the rates that can be charged for crop insurance.
- Private companies must sell insurance to every eligible farmer who requests it. They retain a large portion of the risk on more than 80% of the policies written.
- The federal government subsidizes the farmer-paid premiums to reduce the cost to farmers.
- Also, it provides reimbursement to private insurance companies to offset operating and administrative costs that farmers would otherwise pay as part of their premium.
How do I get started?
At Peoples Insurance, we understand how much your farm means to you. Our agents have decades of local agricultural expertise and a long history in the insurance industry. Every day, we help Iowa farmers meet their insurance needs, and we’re prepared to design the right policy for you as well.