Different Types of Crop Insurance
What Type Of Crop Insurance Do You Need?
When you purchase land, you’re making an investment, so naturally you should protect that investment in every way possible. With that said, if you invest in Carroll County Illinois farm land for sale and plan to use the land for agricultural farming, your next step should be looking into crop insurance.
Revenue Protection Policy
Revenue protection policies are very common, especially for larger farmland properties. This type of policy will ensure the policyholder against yield losses due to any natural disasters. With this policy, the owner selects the amount of average yield that they want to insure. Typically the amount is anywhere from 50-75 percent, and the projected price and harvest price is 100 percent of the amounts determined in accordance with the Commodity Exchange Price Provisions.
Revenue Projection With Harvest Price Exclusion
This policy is very similar to the Revenue Protection policy, except that the amount of insurance will not increase if the harvest price is greater than the projected price. If what is harvested, plus any appraised production multiplied by the harvest price, is less than the amount of the insurance protection, the farmer is paid based on the difference.
This policy will help you protect against a production loss for the crops whose revenue protection is available but not selected. You will also be provided preventative planting and replant protection.
Group Risk Protection/Group Risk Income Protection
Both of these policies are designed to assist in protecting your crops from disastrous losses. Keep in mind that these policies only protect you when yields are low all over your county, not when you have an isolated problem.
When investing in Carroll County Illinois farms for sale, you should be aware of the different types of insurance you can get to protect your crops. Bad weather conditions will happen, and you don’t want to be left without proper protection. By protecting your crops, you are protecting yourself and your investment.
Some common unpreventable natural disasters are: drought, flooding and other storm damage, hail, extremely high or low temperatures and other climate changes, and insects.
Consulting a farmland real estate broker can help you choose which policy is best suited for your property. Their land expertise, as well as their knowledge of different policy types will help you make a confident decision. Make crop insurance a priority to protect your investment and ensure a positive return on your investment.
To speak with one of our expert land brokers about Carroll County Illinois farm land for sale, please give us a call at 815.718.2244 or submit our consultation request form.
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