Farms and other agricultural operations deal with a unique set of potential hazards. Natural disasters, sharp economic turnarounds, and other systemic factors can have a disproportionate effect on farming operations. For these reasons and others, having a suitable agricultural insurance program is imperative for all farming and agricultural operations, to ensure that you are financially able to weather any unexpected storms that may occur.

What Does Agricultural Insurance Cover?

Specifics of any coverage policy will depend on the details of your unique type of farming operation. But in general, an agricultural insurance program will provide coverage if your farm suffers financial setbacks for reasons outside of your control.

Specific types of coverage include the following:

  • Crop revenue insurance, which offsets loss of revenue due to poor yields, or due to dramatic changes in market factors that affect the price of your crops
  • Multi-peril crop insurance, which offers coverage when yields drop due to destructive weather, fire, flooding, and other disasters
  • Crop hail policy, which specifically covers damage that results from hail

In general, agricultural insurance is important because unpredictability in agriculture is unique among industries. A comprehensive agricultural insurance program can ensure that if your farm meets tough times — due to weather, the market, or other factors — your business can stay afloat and continue producing into the future.