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How Does Crop Insurance Work

Drastic swings in weather recently, remind us that midwestern crops can be one of the most influenced commodities on the market. Crop insurance might sound simple, but as Kyle Edwards of Van Gorp Insurors in Pella jokes, no part of farming is simple anymore. Farmer’s must decide if they are going to insure their crops, or risk losing a whole years worth of income, and then they must decide how to get the best coverage for their investment. Farmer’s get a guarantee per acre based on the past history of their farm. The Farmer can then buy up to 85% of that value to protect their crops from losses due to weather. Most Farmer’s choose to buy between 75-85% of their assessed value according to Edwards. He adds that there are great programs subsidized by the government to encourage farmers to insure their crops.