Agricultural is a risky venture from several different standpoints. Weather events like hurricanes, wildfire, and drought can decimate crops; safety hazards such as grain engulfment, vehicle rollovers, and fall hazards lurk in every corner of the farm; and even the sun can pose a threat to farmers if they work too hard for too long during the heat of the day.
While farmers can control some of these risks by taking safety precautions, they cannot do much to prevent natural disasters. That is why crop insurance is so important. It can mean the difference between surviving an extreme weather event to plant again the next year and complete financial ruin.
Who Needs Crop Insurance?
All farmers need crop insurance, but young and new farmers need it the most. They are more leveraged than established farms. This makes them vulnerable to extreme weather because they cannot afford to lose a significant chunk of their income. Some weather events cause so much damage that it equates to an entire year’s worth of farming income. Without crop insurance, weather events such as droughts or natural disasters such as wildfires could wipe out an entire generation of new farmers.
Crop Insurance Deadline Approaching
Hurricanes, droughts, and wildfires accounted for more than $1 billion in crop insurance indemnities in 2017. Farmers need crop insurance to survive such costly and catastrophic events. However, farmers cannot insure crops at their leisure. The 2018 deadline for eligible spring crops is rapidly approaching. Farmers have until February 28 or March 15 to invest in crop insurance. The sales closing dates vary depending on the type of crops the farmer grows. The dates can also differ by county or state as well.
Regardless, the deadline is drawing nearer. Farmers need to insure their crops now to safeguard against natural disasters and extreme weather. As 2017 proved, no farm is immune to these events. Parts of the South, Midwest, Northern Plains, and California all experienced the devastating effects of these catastrophic incidents. To learn more about protecting your crops and your livelihood, contact the experts at Cline Wood.
This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.agribusiness news, agribusiness risk, crop insurance, crop insurance deadline, farm risk management