Farming is a vital industry, but it comes with several risks. Unpredictable weather, pests, and market fluctuations can all impact crop yields and farmers’ incomes. Crop insurance, also known as agriculture insurance, can help mitigate these risks and may financially safeguard farmers’ livelihoods.

How Does Crop Insurance Work?

Crop insurance is designed to protect farmers from the financial risks associated with agriculture. Farmers pay a premium for their policy; if their crops are affected by a covered event, they may receive a payout. This financial support can help farmers recover and continue their operations despite setbacks.

What Is Crop Insurance?

Crop insurance is a coverage tailored explicitly for farmers and agricultural producers. It aims to reduce the financial impact of crop losses caused by unexpected events, such as bad weather, pests or diseases.

Crop insurance typically has two main types:

• Yield-based insurance may cover losses from lower crop yields due to natural disasters or other covered events.

• Revenue-based insurance may cover revenue losses from both low yields and market price drops.

Crop insurance coverage amounts may differ depending on the policy and your farm’s specific needs. Sanguinetti & Co Insurance Brokers can assist in finding the right level of coverage tailored to your farm’s unique situation.

What Does Crop Insurance Cover?

Crop insurance policies can cover a wide range of risks that threaten agricultural production. Coverage details vary by policy, but commonly covered events include:

• Weather-related damage, including losses due to drought, floods, hail, frost, and other adverse weather conditions

• Pest and disease damage, including losses caused by pests and diseases that affect crop health and yield

• Natural disasters such as damage from hurricanes, tornadoes, and earthquakes

• Price fluctuations and drops in market prices for crops.

Crop Insurance in Northern and Central California 

Farmers may be able to better manage the risks associated with agriculture by investing in crop insurance. Contact Sanguinetti & Co Insurance Brokers today to find out more about crop coverage.