Finance

Types of Crop Insurance Policy Available For Farmers

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Farmers are our food providers. Their main source of income is food that they create for us. If due to any reason, their plan to earn money from crop they grow falls in jeopardy, they incur heavy loss. It is this loss they get to indemnify against with the help of crop insurance. Let’s find out what types of policies are available to get the crops insured.

  • Multi-peril insurance

Crops in Australian fields are exposed to a number of natural perils such as hailstorm, excessive snowfall, drought and other difficult weather conditions common in winters. Most of the winter crops such as barley, oats, wheat, and others are covered in this policy. The beauty of this policy is that it offers coverage against all sorts of perils through single policy.

  • Low yield insurance

Multi-peril insurance is also a part of low yield insurance scheme. When the other challenges to the crops such as insect or pest attack, any disease, excessive moisture, frost etc hit the yield, the 50% to 70% of the predicted price of the yield can be insured in this policy.

  • Revenue insurance

Farmers choose expected price of the crop to decide the revenue coverage. If the yield is average and prices do not rise as expected, the loss in revenue is minimized by fixing the lower cap. There is group revenue insurance policy (GRIP) also available which covers the farmers against losses which occur due to fall in average country revenue.

  • Income protection plan

This insurance policy covers the farmers in dual way. If any of the aspects like revenue or yield fail the farmer, they can get the loss covered with income protection plan.

Learn more about all types of insurance policies for crops and the premiums involved and pick the one that serves your purpose the best.