Crop Insurance Gives Farmers A Sense Of Security
Twin Falls, Idaho ( KMVT-TV / KTWT-TV ) Crop insurance is something you might not think about it, but it can save you money if your crops suffer losses.
"In its simplest form, it is just a risk management tool that they can use with their other risk strategies to keep their farming practices going,” said Tory Bailey, a Crop Specialist with the Farm Bureau.
If you are thinking about crop insurance, here are some things to think about.
"If they are looking at it, two some decisions about crop insurance that works for you is one, what is your risk tolerance, how much risk are you willing to take and two, self insurance. I mean if you can absorb a huge hit, that's good, but if you need a little help that's where crop insurance comes in," said Tory Bailey.
The insurance can also lower your borrower risk when applying for loans. Crop insurance policies range from protection against natural disasters to yield losses.
"There's a limited peril or multi peril. Limited peril is your basic hail fire coverage. The multi peril crop insurance which is also the federal program, it covers your drought, excessive moisture, hail, wind, lightning strikes, fire, insect damage, disease, pretty much any natural losses," said Tory Bailey.
The yield protection plan covers the loss of yield and revenue based on market prices.
"They kind of cover how it works, we establish a yield history and then you take your yield history and we look at the coverage level you want from fifty to eighty five percent coverage level that you want to cover of your average yields. And then in the event of a loss, if you fall below your average yields, then we cover the difference."
Most insurance agents have a crop insurance sign up period from March 1st through March 15th.