CROP INSURANCE
Crop Insurance as a Risk Management Tool
  
     
     
    MPCI is available to all producers, regardless of race, color, national origin, gender, religion, age,
disability, political beliefs, secual orientation and marital or family status.
  
    The Role of Crop Insurance
Crop insurance is the primary tool available to growers to
manage downside risk exposures. The government sponsors comprehensive coverage (i.e., Multiple Peril, Group Risk, Crop Revenue and Income Protection Coverages).

The private insurance industry also provides supplementals (Price Option Plus and Increasing Payment) and stand-alone named peril coverages (i.e., Crop Hail/Fire, Citrus Freeze, Hay and Pasture Fire, etc.). The supplemental coverage plans either add to the protection of the government-sponsored, comprehensive programs or to the private crop hail program.		  
         
   

Why Crop Insurance?

Crop insurance is the best risk management approach for growers, government policy and taxpayers.

  • Growers:  Crop insurance is the superior risk management tool for growers because it responds and protects against individual losses or disasters. The coverage is flexible, as each grower decides the amount of protection they need and the deductible that best fits their economic situation. The premium costs can be included in the crop input financing.

  • Government Policy: Crop insurance is the best public policy for disaster and risk management assistance. When an individual grower makes advanced decisions of needed protection, it responds automatically rather than requiring legislation or the bureaucracy to make benefits available. Providing a premium subsidy is an incentive for growers to adequately protect themselves with better coverage that is cost effective for both taxpayers and growers.

    The crop insurance program fits well into a downsized government philosophy because it permits broad utilization of the private insurance industry and growers pay much of the cost. Government is gradually moving towards the role of a reinsurer and regulator which minimizes its need to be proactive.


Who is Eligible to Purchase Crop Insurance?

Growers who have an ownership share in a crop (that meets the requirements of the actuarial table) may insure. The enrollment must be done prior to the calendar deadline which generally is well before planting for annual crops and before the risk period begins for perennial crops.

For more information, see USDA Risk Managment Agency.