As a decision-maker on a farm, you will need to manage many risks. Production risk brought on by weather is one of the most challenging risks to manage. It can not only significantly damage potential yields, but also affect markets and revenues. Crop insurance was created as a cost-effective means to aid farmers in managing or reducing the impact of these risks.
Provided through the U.S. Department of Agriculture (USDA) Risk Management Agency (RMA), insurance policies are based on crop history of individual producers or an entire area, generally a county. They provide protection against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, disease, and market volatility.
Bulletin E-3415: Introduction to Crop Insurance for Field Crops reviews the basics of crop insurance and how its use can benefit your farm. This includes understanding the differences between yield and revenue policies, the ways each provides protection, and the advantages offered by each. There is also a review on how USDA RMA provides beginning farmers with additional benefits within crop insurance to assist in managing risks.
Categories: Michigan, Crops, Weather