4 Essential Reasons For Acquiring Farm Insurance

Posted on: 12 March 2021

At least 38% of the earth's surface is used for farming to feed the world's 8 billion people. The proportion is higher in the United States. Unfortunately, farmers harvest only a fraction of the anticipated yields because of unforeseen events. There were at least 20 different climate-related disasters in the US in 2020, causing devastating losses.  Whereas farm owners suffer huge losses because of unforeseen events, most of them are yet to embrace farm insurance. Getting a farm insurance policy protects you against potential economic losses. Whereas you cannot protect your farm against losses, you can reduce the incurred financial implications. This article highlights essential information you should know about farm insurance.

Support Services

Purchasing a farm insurance policy offers numerous benefits beyond just protecting yourself against financial losses. Most insurance companies offer additional benefits such as farm management training and technology-based control systems. For example, farmer-owners may receive mobile-based acreage reporting applications, allowing them to monitor their farm's yields. Farmers may also benefit from market and agricultural research resources, guiding their farming decisions. For instance, farmers might learn about crop options that are more resistant to climate disasters, increasing their realized yields.

Flexible Policies

Like other insurance categories, farm insurance entails flexible packages from which farmers might select their most preferred options. Usually, the policies are not homogenous and differ from one insurance company to another. However, the covered risks are often similar. For example, some farm owners may opt to purchase insurance policies that only cover their crops and livestock. Other farm owners might acquire comprehensive policies that include even their farming equipment. Insurance agents will guide you to select the most appropriate option for your farm.

Remote Premium Payment Options

Currently, farm owners are not required to visit their insurance companies' premises to pay their premiums. Technological advancements have enabled online banking, easing hassles associated with bill payment. Moreover, the online payment options allow farm owners to purchase policies from their preferred insurance company, including those with offices out of state. Following registration, farm owners may make their payments online, reducing the time wasted away from their farms.

Covers for Small Farm Owners

Often, small-scale farm owners think that farm insurance is intended for people with hundreds or thousands of acres. The misinformation prevents many from insuring their farms, leading to devastating losses during natural calamities. However, small farm owners should embrace farm insurance. Most companies offer insurance covers to individuals with only a few acres, providing a valuable opportunity that small-scale farmers should exploit.