Why Should Farmers Get Farmers Insurance?
An insurance policy can be basically divided into two categories, one, life insurance, two, general insurance (sometimes also called non-life insurance. Life insurance policy includes life term life insurance and whole life insurance policy. Non-life insurance policy includes auto insurance, house insurance, business insurance, health, etc.
Health insurance covers your health issues only. For example, you tested positive for Covid and you end up in the hospital for a week. If you have health insurance, your hospital bills as well as other medical bills will be covered by your health insurance. Life insurance on the other hand covers major health issues, cancer for example, (provided it is clearly written on the terms), accidents, loss of body parts due to accidents, etc.
Agriculture insurance belongs to general insurance or non-life insurance. Agriculture insurance includes crop or farmland insurance as well as farm animals insurance. Farming can be profitable for professional farmers as well as hobbyist farmers. I have seen a lot of hobbyist farmers making a lot of money from farming. With the advancement of technology, you can farm even in a small space, you can farm on your terrace, on the patio, on the veranda, in the front yard, in the backyard, etc. These days, you can even farm indoors, or without water. Therefore, as a farmer, you need to get farmers' insurance.
Are You a Farmer? Get Farmer's Insurance!
These days, insurance can cover almost anything, including your farm produce, you can insure your crop as well as cattle or any other farm animal. Before I divulge what is agriculture insurance, I will explain why you need agriculture insurance.
You invested $1000 to farm watermelon but there was a massive flood and all of your watermelon plants were destroyed. If you had insured your crop, you could have gotten converge for your investment.
You have a chicken coup but due to some unknown disease, all of your chickens died. Insurance would help you recover your loss.
Agriculture insurance is an insurance policy that will cover the loss and damages in the agriculture sector. In order to get agriculture insurance first of all the potential value of your crop or cattle is determined and you have to pay the premium for the potential value.
Are You a Farmer? Get Crop Insurance
If you are a farmer, it makes sense to insure your crop. Let me explain.
You planted rice, you are expecting a good harvest. However, unfortunately, it rains hailstone and your crop is destroyed. While hailstone is a natural phenomenon, so there is no way you can stop or predict hailstone, you can insure your crop and recover from financial loss.
In order to insure your crop, you will have tom first apply in the insurance company that provides crop insurance (not all insurance companies have this offer). Someone from the company will come to your farm and assess the potential value of your crop. You then pay the premium and insure your crop. If there is no damage to your crop, the insurance company keeps your premium, but in case the crop is destroyed, the company will provide financial assistance as agreed on the policy document.
Benefits of Insuring Your Farm Animals
If you are raising farm animals like chicken, goats, pigs, cattle etc. it is highly recommended that you ensure your farm animals. If you have insured your animals and if the insured animal dies from disease and accidents, you can get financial compensation.
Let say, you are raising 100 chickens and 90 percent chickens die due to avian influenza. If you have insured your chicken for $1000, you can get 70-100 percent financial compensation, in other words even when your chicken die, you can get $700-$1000 from the insurance company. In case nothing happens to your chicken during the insured period, all you have to lose is the premium you have paid to the insurance company. Generally speaking, the premium is less than 10 percent of the insured amount.
Insuring your livestock can help you recover the financial loss if anything happens to your animals.
First published on Trendri, in author's name
