The expansive fields of soybeans in the summer and the towering stalks of corn in early autumn are hard to miss in Indiana. When you’re driving down the backcountry roads, racing acres among acres of these crops, it isn’t common to contemplate the work behind that vast area of land. Local farmers see their crops as some of their greatest achievements of the season. Corn and soybeans are Indiana’s most valuable farm products, and Indiana is a leading producer among the states. To local farmers, crops are the result of a year’s worth of hard work. Protecting those crops not only saves the farmers from immense financial despair, but local communities rely upon agriculture for food and clothes.
The History of Crop Insurance
After the 1980’s agricultural crisis, lawmakers learned the importance of managing the risks of owning crops. In 1980, Congress passed legislation to increase participation in the Federal Crop Insurance Program and make it more affordable and accessible. However, crop insurance was set in motion as early as 1880. In this time period, private insurance companies began to offer policies to local farmers as a way to preserve crops against the damage of hail storms. Crop-hail policies are still sold today, and even offered here at La Porte Insurance Agency. In 2018, farmers spent $980 million on crop-hail insurance to protect $36 billion worth of crops.
Fast forward to today, and investing in crop insurance is as crucial now as it was back then. At La Porte Insurance Agency, we offer two types of crop insurance policies, Multi-Peril Crop Insurance (MPCI) and Hail and Fire Policies.
Multi-Peril crop insurance covers all forms of loss associated with crops. Drought, flooding, prevent plant, re-plant, pests, and quality issues are all included in the Multi-Peril. It is the oldest and most common form of the federal crop insurance program in the country. Also included in that policy is a constituent that guarantees revenue for the crops.
What Can MPCI (Multi-Peril Crop Insurance) Cover?
- Deep freezes
- Excessive moisture
- Hot weather
- Other forms of natural catastrophes
The second classification of crop insurance is Hail and Fire policies. Crop-hail insurance is purchasable before, during, or after the growing of your crops. Due to the hail that Indiana does receive from time-to-time, this is a policy that local farmers should consider.