Farm Insurance

Getting the right farm insurance is essential to the financial well-being of your Kentucky farm or ranch. Contact Owens Insurance Agency in Moorhead, Kentucky, for a personalized farm insurance policy today.

Do Farmers Have to Have Crop Insurance?

The U.S. federal crop insurance program covers $100 billion of liability nationwide. The government pays 60% of premiums to help provide essential coverage for farms at risk of lower crop yields due to pests, uncertain weather and price changes.

Farmers who want to be eligible for certain government benefits, including disaster benefits, must purchase crop insurance or waive their eligibility. Lenders also require crop insurance for farmers who have a production loan.

How Crop Insurance Works

Approved insurance partners (AIPs) work with independent insurance agencies, like Owens Insurance Agency, to provide crop insurance for Kentucky farms and ranches. Agents receive oversight and training from insurance companies.

The federal crop insurance program provides three main crop insurance options.

·       Multiple peril crop insurance (MPCI) covers crop losses, including lower yields due to natural events such as hail, fire, insect damage, drought, disease or damaging wind. MPCI is available for more than 120 different crop types.

·       Crop-hail insurance helps protect high-yield crops in areas where hail is a frequent event. This coverage is not part of the Federal Crop Insurance Program but is sold by private insurers and regulated by the state.

·       Crop revenue insurance helps support farmers during years when crop prices are low or crops have a low yield. This coverage helps farmers protect their organization’s earnings from drastic price changes from one year to the next.

What Crops Are Covered by Crop Insurance?

Commodities eligible for crop insurance include but are not limited to:

·        Rangeland

·        Perennials

·        Crops, such as corn, soybeans and wheat

·        Crops not planted annually, such as citrus or apples

·        Livestock, such as cattle, pigs, chickens or lambs

·        Apiculture (beekeeping)

·        Pasture

·        Oysters

How Crop Insurance Price Is Determined

The Federal Crop Insurance Corporation (FCIC) sets crop insurance rates, which are consistent across the industry.

A farm’s per acre guarantee is set using the insured organization’s individual expected yield from previous years. A farm in business for fewer than five years may be eligible for more significant guarantees.

How Much Does Crop Insurance Cost?

Your crop insurance premiums are standardized, but the amount you pay for crop insurance depends on several factors. Insuring only a portion of your cropland is not an option. You must purchase crop insurance for all rented or owned acres inside the county. Crop insurance premiums are set using a formula:

Insured acres x per acre guarantee

Get the Farm Insurance You Need

Whether you need whole farm revenue protection or crop insurance coverage, our agents are ready to help with your risk management plan.

Contact Owens Insurance Agency today to get a quote for your specially-tailored farm insurance policy.