What is Agricultural Insurance or Crop Insurance

Crop insurance or agricultural insurance is taken by agricultural producers, as well as breeders. To protect themselves from the loss of their crops due to natural calamities like hail, drought and floods or loss of financial gains due to decline in agricultural value. The two main types of crop insurance are called crop insurance and crop income insurance .

Plant Insurance:
There are 2 main types of crop insurance:
Hail insurance: Hail insurance is mainly available from private insurance companies (in countries with a private sector) because hail can cause a small peril occurring in a limited area and cumulative losses are usually uncontrollable. Reserved capital of personal insurance. By the beginning of the decade, crop insurance was available to farmers in France and Europe. This is the first type of Hell insurance from a junior accountant's point of view. It is possible to realize hail risk in financial instruments, since the opportunities are isolated.

Multiple Risk Crop Insurance (MPCI): The risk of this type of insurance is not limited to just one peril. Generally, multi-peril crop insurance covers hail, torrential rain and drought in a combined package. Sometimes there are additional hazards, such as insects or germs that cause disease. The disadvantage of crop insurance against multiple risks lies in the possibility of large-scale events. Such cases can result in significant losses that exceed the insurance company's financial capacity. To form these insurance groups, risks are combined with specific policies; Name of Multi-Peril Crop Insurance (MPCI) policy. MPCI risk is borne by administrative insurers, and insurance premiums are generally not fully subsidized by the administration. USDA acknowledges that the original multi-peril crop insurance training program was implemented in 1938. Since then, the Federal Crop Insurance Corporation has been participating in this multi-peril insurance program. Since 1996, the Risk Management Agency (RMA) has been dynamically evaluating insurance premiums for organizational risk.

Crop Income Insurance: At the time of harvest, the value of the crop generates income from the crop. Farmer's income level, crop income insurance varies with average income. The RMA Trade Service uses the expected price of the crop inventory in the market to determine prices. Combining the expected price with the farmer's normal production yields an estimate of the farmer's income. Access to the hope market offers guaranteed income until the crops are planted. There is only one guarantee of a positive monetary amount. The policy provides coverage if the actual delay amount and current value of transactions in the derivatives market is less than the guarantee. In the United States, the training program is called Crop Income Coverage. Crop yield insurance covers mating costs during the growing season. It does not pack waste that may come from one growing season to another.