Debunking Some Common Myths Concerning Crop Coverage
Farmers are exposed to a unique set of risks that people in other industries are not prone to. To mitigate these risks, many take out crop insurance policies to help them deal with potential losses. There are plenty of myths surrounding these policies, and we would like to debunk a few of them to help you become better informed.
Myth #1: Crop insurance encourages farmers to be unproductive, because they stand to gain more if their crops are lost than they do if they are harvested.
Fact: Crop insurance isn’t designed to be “corporate welfare” for farmers as many believe. Instead, it is intended to calculate the potential for loss just as any other type of insurance is, and compensate farmers for losses that are beyond their control.
Myth #2: It’s not worth it because my crops aren’t covered.
Fact: The type of crops covered varies from one area to the next; however, you can still obtain coverage as long as your crops are insurable somewhere in the United States. Your independent insurance agent simply needs to request rates from carriers, or talk with the Farm Service Agency for information on its Non-Insured Assistance Program (NAP).
Myth #3: If I have lower-than-average yields for my area, I won’t recover much during a loss since county averages are used to determine it.
Fact: Crop insurance carriers use each farmer’s own production history rather than county averages when setting up records.
Myth #4: There’s too much paperwork involved.
Fact: All that’s generally needed is your production reports in order to establish a policy.
Myth #5: It’s unaffordable for the average farmer.
Fact: The cost of crop insurance is actually between two and seven percent of the potential liability. In addition, the government subsidizes more than half the cost of liability, making crop insurance affordable for even small farmers.
Crop insurance provides valuable protection for farmers, who deal with many variables that are out of their control. Talk with an agent today to find out how you can obtain protection.
Get the coverage you need. Call Interstate Insurance Agency, Inc. at 641-792-7316 for more information on farm insurance.