Crop insurance is now an important part of farming and the latest figures released by Crop Insurance Services this week show growers are participating. The group reports that through Aug. 11 nearly 985,000 policies have been processed through participating companies and USDA's Risk Management Agency.
Those policies cover nearly 242 million acres and represent more than $87 billion in liabilities and account for nearly $2 billion in farmer-paid premiums. Farmers are investing in this kind of crop protection. However, that's a slide from 2013 when 1.2 million crop insurance policies were in force and farmers spent $4.5 billion.
As a recap, farmers can purchase policies protecting 128 different crop, according to a media release from NCIS. And since 2000 farmers have spent $38 billion for crop insurance. Interestingly, in 2013 90% of planted cropland was covered by crop insurance.
In the video below, an NCIS rep - Todd Harris, Rossville, Ill. - talks about the role of crop insurance and banking. Bankers want to know what they invest is protected in some way.