First off, let us be clear that Erie Mutual does not at this time offer crop insurance (we do however cover harvested produce).
However, since we do offer farm insurance and many of its associated coverages (including tractor, property, equipment, livestock and hobby farm) we have learned PLENTY about crop insurance over the last century and a half.
FIRST, WHAT IS CROP INSURANCE?
Crop insurance can be looked at as a risk management tool that farmers use to protect their crops against losses due to things like:
- natural disasters
- weather events like droughts and hail
- market fluctuations
- infestations
- wildfires
It ensures that farmers can recover financially if their crops are damaged or destroyed by any number of threats.
ARE THERE DIFFERENT TYPES OF CROP INSURANCE?
You betcha!
The farm insurance industry, especially here in Canada, tries to make operating a successful farm as safe and easy as possible by offering a variety of customized policies based on each farmer’s different needs.
After all, without our Canadian farmers, we would be in some serious trouble.
Here are the types of crop insurance offered by some insurance companies:
- Multiple Peril Crop Insurance. MPCI losses from natural disasters like drought, flood, hail, disease, and pests.
- Crop Revenue Insurance. This protects farmers against drops in crop prices or yields, ensuring a guaranteed level of revenue.
- Hail Insurance. A private insurance option that covers hail damage separately from other weather-related risks.
- Whole Farm Revenue Protection. WFRP covers revenue for the entire farm rather than specific crops.
HOW CROP INSURANCE WORKS
Farmers select the coverage levels best suited to them and pay premiums based on the risk assessment of their particular location and types of crops.
In the event of a loss, an insurance adjuster assesses the damage and the farmer receives a payout based on the policy terms.
Government programs like the AgriInsurance Program aim to make crop insurance affordable for Canadian farmers. Also check out agricorp.com.
BENEFITS OF CROP INSURANCE
When farmers are protected we all benefit. Other than the added peace of mind for farm operators that comes with knowing they’re protected, crop insurance also offers:
- Stronger financial stability in case of disasters
- Encouragement to invest in better farming techniques
- Extra helps to secure loans from banks that require insurance coverage
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
SOURCES:
2. afsc.ca
