As a farmer, you know that your livelihood often depends on the weather. So many external factors can affect crop growth, which dictates how much you earn. But rather than yielding to the uncertainty of ruined crops, you can protect yourself and your business with farm insurance.
There are many facets of farm insurance—including livestock, buildings and equipment—but here, we’ll focus on protecting your crops. Crop insurance protects the investment you’ve made, along with the revenue you may have lost, in the event that a covered event has a negative impact on profits. The three main types of crop coverage include: 
- Named peril: Protect your crops from the factors that are most likely to destroy them. For instance, if you work in a very dry location, you may choose to list fires on your policy since the risk of fire may be high. With this type of coverage, your crops are protected only from the perils specifically named in your policy.
- Multi-peril: Open up your policy to cover a wider range of risks. This type of coverage offers broad crop protection in the event of drought, flooding, fire, insects, disease, hail, wildlife, freezing and other types of damage.
- Revenue: This type of coverage is a little more involved because it’s based on how much your revenue deviated from average revenue. The Risk Management Agency will consider the price a crop should sell for, along with how much you expect to harvest, to determine your estimated revenue. If a covered event prevents you from earning that dollar amount, this policy can help make up the difference.
Protecting your investment in your crops is a great way to work toward a successful future. An independent insurance agent can help you find the right policy to cover your specific situation.