When you think about running a farm or ranch, insurance might not be the first thing that comes to mind. But in today's world of unpredictable weather, volatile markets, and rising input costs, having the right agricultural insurance in place is more important than ever. It’s not just a safety net—it’s a safeguard for your livelihood.
In this ultimate guide, we’ll walk you through the insurance policies, terms, and programs that every grower and rancher should understand. Whether you’re growing soybeans in Iowa or running a diversified organic farm in Ohio, this guide breaks down the essential risk management strategies to keep your operation resilient.
Let’s start with the basics: farming is risky business. From natural disasters like droughts and floods to market fluctuations and pests, farmers face threats that are often out of their control. That’s where farm insurance comes in.
Agricultural insurance is designed to protect your farming operation from financial loss caused by unforeseen events. It's a critical part of managing your risk and maintaining profitability year over year.
Think of insurance as your farm’s financial backup plan—it helps cover losses and supports your ability to replant, recover, and move forward when things don’t go as planned.
At the heart of American ag insurance is the Federal Crop Insurance Program, managed by the Risk Management Agency (RMA) under the USDA. This program offers a range of insurance products to meet the diverse needs of farmers and ranchers across the country.
Private insurance providers administer the policies, but the federal government backs and subsidizes them, making them more accessible to producers of all sizes—including beginning farmers.
There are several types of crop insurance coverage, and choosing the right one depends on your crops, location, and farming practices. Here are the most common options:
This is the most widely used form of crop insurance in the U.S. It covers loss of revenue and crop yields due to a wide range of causes of loss, including:
MPCI offers both yield protection and revenue protection, making it ideal for growers seeking comprehensive coverage.