Crop insurance helps manage farm risk, helps mitigate loss, but is extremely complex at first glance.
A project from the National Crop Insurance Services (NCIS), www.cropinsurancamerica.org is an excellent resource for anyone looking to expand their knowledge of the history, benefits and details of the Federal Crop Insurance Program.
In February 2018, a three part educational video series titled the “Risk Management Minute” was launched at the NCIS annual meeting. Each video and their respective press releases are linked below:
A brief explanation of crop insurance’s cost-sharing structure – where farmers help offset taxpayer risk exposure by paying premiums and meeting deductibles.
Press Release: https://cropinsuranceinamerica.org/crop-insurers-kick-off-annual-meeting-risk-management-minute-video/
The Risk Pool
From the press release, “The idea of shared risk – where premiums rise and fall with participation levels – is not unique to agriculture… the more people crop insurance covers, the more people there are to share the risk. And the more people there are to shoulder risk, the cheaper coverage is for everyone.”
Press Release: https://cropinsuranceinamerica.org/new-video-explains-importance-of-widespread-crop-insurance-participation/
Private Sector Delivery
From the press release, “Despite crop insurance’s benefits and popularity among farmers, some farm policy critics are proposing drastic cuts that would make crop insurance unaffordable and unavailable for many farmers. And if such proposals were adopted, it would be difficult for the private sector to remain in business.”
Press Release: https://cropinsuranceinamerica.org/crop-insurers-release-last-video-three-part-series/
To learn more about the additional benefits* of writing your crop insurance with Farm Credit of Central Florida, call Jennifer Parrish at 863.904.3182.
*Certain limitations, conditions and exclusions apply. Please refer to policy for more details.