Protecting America’s Farmers from the Perfect Storm of Volatile Weather and Global Competition
The agriculture sector sees a lot of uncertainties each year, which can negatively impact a farmer or rancher’s year-end revenue. 2020 has shown how extreme these challenges can be and why the agriculture industry needs a means to protect itself from these growing risks.
“Farmers and ranchers have a need for protection that guarantees them an appropriate amount of yield at a price that is reflective of the market when disaster strikes,” said Tim Weber, president, Great American Insurance Group Crop Division.
“Crop insurance can help by providing both yield protection and price protection.”
Growers often obtain financing to cover the expenses for their upcoming crop year. One benefit of crop insurance is that growers can leverage their crop insurance coverage as collateral. If a devastating weather event destroys their crop, their insurance helps to cover operating expenses and satisfy their loans so they can continue operations the next year.
With crop insurance, growers are able to more strategically and aggressively market their agriculture commodities in the face of uncertainty.
While increasing global competition and volatile weather are always concerns for farmers and ranchers, this year highlights why crop insurance is even more vital.
Here are two ways in which crop insurance provides the added value and protection needed to overcome these obstacles.
To learn more about Great American Insurance Group, please visit their website.