How Crop Insurance Helps to Minimize 5 Key Risks Facing American Farmers
Farming has never been an easy business. Success depends largely on factors outside of anyone’s control — rainfall, sunshine, humidity, etc. Today, the pressures on the average American farmer go beyond the whims of Mother Nature and are only growing more intense.
When the agricultural sector is at risk, everyone is at risk. Without protections in place to help farmers recover quickly from losses, food supply becomes stilted and society pays the price. Federally funded crop insurance has provided a safety net for farmers since 1938, but even this program is not a perfect solution.
“It’s important for everybody to have a safe and affordable food supply. That’s the basis of the policy in the U.S. with regards to crop insurance,” said James Korin, President of NAU Country Insurance, a QBE Insurance Company. “The biggest challenge, however, is that commodity prices and the revenue per acre shrink over time. The farmers have to get bigger, and they have to be more efficient with the way they spend their money.”
In the face of new challenges, it’s become increasingly important for farmers to partner with crop insurance providers who not only provide funds, but also bring expertise and resources that help to minimize loss and expedite recovery.
Here are five key challenges facing farmers today, and why their choice of crop insurer matters:
To learn more about QBE North America, please visit their website.