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Stability in Income: It protects the farmers against losses caused by crop failure. It acts like a tool that allows farmers to manage their yield and price risks.
Minimal Debts: Farmers are able to repay their loans even during the time of crop failure with the support of the right insurance partner.
Technological Advancement: Insurance companies work with Agri platforms that use IOT to enhance agriculture practices and reduce farmers’ losses. This helps farmers to understand the latest technological advancements and improve their crop production.
Yield Protection: Crop Insurance protects farmers against a production loss for crops. It also offers preventive planting and replant security.
Provides Awareness: Insurance companies offer awareness campaigns to help farmers understand the effect of natural calamities and protect their farms.
As with any business, agricultural producers face risks of all kinds. However, the two most significant risks facing farmers are yield and price. Fortunately, producers can buy insurance that reduces their exposure to low yields or prices. Unavoidable risks protected by crop insurance include:
Since the 1930s, crop insurance has been available to agricultural producers in the United States. However, it was in the 1990s that the United States government promoted crop insurance by offering new products and more insurance premium subsidies.