Farmers, ranchers, agricultural producers, and others rely on crop insurance to protect against the loss of their crops due to natural disasters or the loss of income due to decreases in the prices of agriculture.

The two main types of crop insurance are multiple peril crop insurance (MPCI) and crop-hail insurance.
Let’s look at each of them separately.

Multiple Peril Crop Insurance (MPCI)

Over 90% of farmers who invest in crop insurance buy MPCI policies. These types of policies are supported and regulated by the federal government, and they’re sold and serviced by insurance companies in the private sector.

MPCI covers the loss of crops, lower yields, and losses due to natural events. Covered losses typically include losses due to hail, frost, or high winds. MPCI also covers losses due to fire, drought, disease, flooding, and insect damage. Farmers can buy crop insurance for over 120 different crops. Policies don’t cover all crops in certain geographic areas, and farmers are required to purchase policies before the start of the growing season.

Crop-Hail Insurance

Farmers who have high-yielding crops and whose farms are located in areas where there are frequent hailstorms may opt for crop-hail insurance as a supplement to their MPCI coverage. Unlike MPCI, crop-hail policies are not part of the Federal Crop Insurance Program. These programs are regulated by state insurance departments. Fortunately, many crop-hail insurance policies have either no deductibles or low deductibles. Unlike other perils that affect crops, hail often damages only part of a crop. Also, unlike MCPI policies, farmers can purchase crop-hail insurance at any time during the year.

A commercial insurance agent is the best resource for assisting farmers and ranchers in securing the most appropriate crop insurance coverage.