Agriculture Insurance

Agricultural production depends on the weather more than any other economic sector. The industry faces greater agricultural risks than ever before as a result of the already noticeable effects of climate change.

Like a standard homeowners insurance policy, farm insurance covers your home, possessions and personal liability. Beyond that, it also includes coverage for your machinery and livestock — though not for your crops.

Under the contract, the insured farmer agrees to insure all the eligible acreage of a crop planted in a particular county. This choice is made county by county and crop by crop. All eligible acreage must be insured to reduce the potential for adverse selection against the insurance provider.

Crop insurance is divided into two categories, the federally subsidized multiple-peril crop insurance and the state-regulated private crop insurance. In 2021, over $14 million in premiums were written for multiple-peril crop insurance and over $1.2 million in premiums were written for private crop insurance.