Crop Insurance

Crop insurance is a valuable risk management tool that allows growers to insure against yield and revenue losses. Crop insurance is available to cover individual crops or as whole-farm revenue insurance.

Crop insurance is federally subsidized and is sold by private crop insurance agents. A minimum level of crop insurance, called CAT insurance, is available to all farmers regardless of size at no premium cost (all premiums are paid by the federal government). Higher levels of crop insurance (buy-up protection) are also federally subsidized, with farmers paying only 33 to 62 percent of the actual cost of the insurance (depending on the type and level of coverage selected).

Crop insurance is available for at least one commodity in every county in Pennsylvania; a total of 28 different crop insurance policies are available across the state (including policies for livestock producers). More information on specific crops and types of coverage can be found under “Educational Resources-USDA Risk Management Agency”.

The Commonwealth of Pennsylvania is a strong supporter of crop insurance and has allocated resources to help farmers buy crop insurance and evaluate their options since 2000. This support helps producers to better understand their risk management needs and afford higher levels of coverage so that they are better protected when disasters occur.

USDA’s Farm Service Agency also has risk management programs designed to provide a farm safety net including the Non-Insured Crop Disaster Assistance Program (NAP), the Agricultural Risk Coverage (ARC) Program, and the Dairy Margin Protection Program (MPP-Dairy).  More information on these programs can be found under “Educational Resources-USDA Farm Service Agency”; check with your local FSA office for deadlines and to see if you qualify.