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| | Crop insurance - Wikipedia, the free encyclopedia |
 | | Crop insurance is purchased by agricultural producers, including farmers, ranchers, and others to protect themselves against against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities. |
 | | Crop-hail insurance is generally available from private insurers (in countries with private sectors) because hail is a narrow peril that occurs in a limited place and its accumulated losses tend not to overwhelm the capital reserves of private insurers. |
 | | For example, RMA establishes crop-revenue insurance guarantees on corn by multiplying each farmer's corn-yield guarantee, which is based on the farmer's own production history, times the harvest-time futures price discovered at a commodity exchange before the policy is sold and the crop planted. |
| en.wikipedia.org /wiki/Crop_insurance (420 words) |
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