What is Agriculture Insurance
Learn what agriculture insurance is.
Agriculture insurance is bought so farmers, agricultural producers and others can have a fall back when something has happened to their crops or animals. There are a lot of risks when farming, including natural disasters and revenue loss when prices decline in the market. An agriculture insurance saves them from being bankrupt by covering the risk and loss when it does happen. Events that have high impact to farmers include floods, storms, droughts, and other epidemics. There are also special crops that come with high risk, so they need an insurance to cover the higher risks associated with particular crops. A crop insurance may either be crop-yield insurance or crop-revenue insurance, so it is important to choose the right one.
Importance of Agriculture Insurance
Agriculture insurance is important for farmers.
As mentioned earlier, an agriculture insurance can protect against revenue loss that may happen when there is a dip in the prices in the market for agricultural commodities or when a natural disaster happens that will affect the yield of the crops. While it is not every day that this will happen, it is important for famers to be prepared should a problem arises. This is as important as a car insurance, which will cover for the repair costs when met with an accident.
Agriculture Insurance Should Cover
Your agriculture insurance should cover the important parts.
There are various agriculture insurances in the market and each covers different elements. A full coverage is, of course, preferable since it will cover all risks and all losses that may happen, but it comes with a higher price. For those with limited budget, they should at least choose an insurance that covers the basic necessities like livestock, if there is any. There is also an insurance that protects the farm against any liability, such as a farmer getting injured from doing farm work. This also protects the property from natural disasters.
For those living in natural disaster-prone areas, like tornado, hurricane, and landslide-prone regions, it is important to get an insurance that covers livestock like horses and cows. These animals do not have evacuation options and they are often the casualty in natural disasters.
Should You Buy Agriculture Insurance?
Is getting an agriculture insurance beneficial?
If your livelihood is growing crops and tending to farm animals, then you should definitely buy an agriculture insurance. It costs more money, but it saves you from loss and covers the risks associated with farming. In the long run, it is more beneficial to invest in a good insurance that covers the basics and is tailored for you than to suffer the potential huge loss when a problem arises.
It is more important to be prepared against the risks that could potentially ruin our livelihood. To safeguard against future losses, it is advised to get an agriculture insurance. You never know what is going to happen and as the saying goes, it is better to be safe and be sorry.