SERIES: The Experts in Our Field ft. Crop Insurance

Here’s All You Need to Know (about crop insurance, that is!)

By: Kelly Bailey, crop insurance specialist

So, you want to know what crop insurance is, why you need it, or how it came to be?  Let me share my thoughts with you.

The Federal Crop Insurance Program was first established in 1938, but due to the Crop Insurance Reform Act of 1994 which increased the demand for program participation, it became necessary for farmers to rely on private insurance companies for their crop insurance needs.  And we figured, who better to fill that need than an ag expert like Farm Credit?

Crop insurance is part of the Farm Bill (which is an agriculture hot topic right now) and as those programs, policies, and procedures change, crop insurance changes with it.  We lobby to make sure the changes don’t decrease your coverage when faced with crop loss.

Last year, there were 264 million acres of farmland protected through crop insurance. But, I bet you’re really wondering how such a large program impacts the local agricultural industry, right?  Well, in Maryland alone there were just over 900,000 acres of farmland insured and over $26 million was paid to the farmers in indemnities for both production and/or revenue losses. In Delaware, crop insurance protected $145 million of liability, with $8.8 million being paid to farmers for indemnities.

• So, you want to know why you need crop insurance and how it can benefit you? Consider this:
• Crop insurance makes sure you don’t suffer losses due to price or natural disaster.
• The programs are customizable to meet your individual needs and help protect you against revenue or production losses.
• Crop insurance can help with your marketing plans when it comes to settling forward contracts.
• Producers receive indemnities in a timely manner.
• Loan collateral – helps you increase your borrowing capacity. 

I think I’ve told you all you need to know (to get started), but do you want to know more? Visit farmcreditcropinsurance.com or tweet me @KellyBailey1103.  See you tomorrow to discuss why you should choose MAFC for your crop insurance needs.