Crop insurance

From ArticleWorld

Crop Insurance may be defined as insurance that covers growing crops against hail, wind, and fire. Sometimes protection against a more extensive threat of risks can also be approved and agreed upon. This insurance goes a long way in covering and helping to protects farmers from crop losses due to natural hazards. Hail and fire insurance are offered through private companies without federal subsidy. A subsidized multi-peril federal insurance program also is available to most farmers.

Different states

In America as elsewhere, crop insurance provides coverage for yield-loss due to natural causes of loss including: drought, excessive rain, hail, flood, frost, snow, wind, lightning, hurricane, tornado, accidental fire, damage caused by wildlife, waterfowl, insects, earthquake or volcanic eruption and/or plant disease. The premiums for crop insurance coverage are shared by the federal government, state government and the participating producer. Non-covered losses include negligence or wrong-doing, poor management and farming practices, failure or breakdown of irrigation equipment or facilities and chemical drift.

In India about 65% of the population is dependant on agriculture for livelihood, while about 35% of the Country’s GDP is contributed to by agriculture. Hence crops and their insurance cover is a weighty issue in the eyes of the central government as well as the farmer. The Crop insurance schemes aim at providing comprehensive risk insurance which cover the yield losses that occur to the agricultural output of small and marginal farmers due to non preventable risks. The crop insurance risks covered under the non-preventable category are:

1. natural fire and lighting
2. storm, hailstorm, cyclone, typhoon, hurricane, and tornado etc
3. floods, inundation and landslide
4. drought, dry spells
5. pests/diseases