Crop Insurance is a valuable business risk management tool that provides farmers with financial protection against production losses caused by natural perils, such as drought, excessive moisture, hail, frost, wind and wildlife.Basically, there are four types of crop insurance and they are outlined below with some explanations.MPCI MPCI stands for multiple peril crop insurance.This is a type of crop insurance that is designed to cover the crops against several different types of loss.

This type of coverage will protect the farmer against any weather-related losses, such as a tornado or a hail storm.In addition, this policy covers things like low yields, late planting, prevented planting and replanting costs. APH This term stands for actual production history.This type of insurance is based on the production history of a farm, over a certain number of years.

In most cases, a policy will base the actual production history on a period of somewhere between four and 10 years.The average production will be calculated over that time period, and then a certain percentage of the yield will be paid if a loss occurs.This type of policy provides coverage for a wide variety of perils.

For example, the farmer could file a claim due to drought, wind damage, hail, frost, insects, disease or excessive moisture.If the yield of a crop is less than the predetermined covered amount, the farmer will receive a check for the difference between the two percentages.This is the most common type of crop insurance that is available in the market today.

It has been used in the farming industry for many years.GRP GRP stands for group risk plan.This is a type of crop insurance that is based on the yield of a group of farmers from a particular county.This is not a type of policy that is based on an individual farmers yield, like APH.

With this type of policy, you could be paid for an insurance settlement regardless of the actual yield of your farm.Your farm could do fine, but if the average yield of the entire county decreased below a certain amount, you could still receive a payment.This type of coverage allows you to choose the yield level that you want to be covered against, when calculated with the average of all of the farms in the county.CRC CRC is a term that stands for crop revenue coverage.

Instead of being based only on the yield of the farm, this coverage is based on the total amount of revenue that is generated from a crop.With this type of coverage, you will also get protection against drops in prices for the crop instead of just protection against losses.This is a comprehensive type of coverage that is designed to look at the bottom line instead of only looking at how much you were able to harvest from a particular farm for the year.

There are some other questions frequently asked that relates to crop insurance, below are FAQ's and answers to them.What does a farm insurance policy cover? A farm insurance policy combines the standard coverage offered by a personal homeowners policy with commercial property and liability coverage.The benefit of a farm policy is that it can be customized to the needs of the insured.Can farmers insure their crops?  Yes, a farmer can insure their crops because crop insurance is purchased by agricultural producers, including farmers, ranchers and others to protect against either the loss of their crops due to natural disasters, or the loss of revenue due to declines in the prices of agricultural commodities.

How much does a crop insurance agent make The average pay for a Crop Insurance Agent is $35,000 per year.