by aditya abhishek
The role of farm insurance companies are to provide crop insurance to farmers which help in overcoming losses due to natural disasters & decline in agriculture commodity prices.
250 million acres of cropland in America that is owned by about 2.2 million farms owner. Under USDA, federal crop insurance is available to farmers of America.
Farm insurance is divided into 2 categories, crop yield insurance and crop revenue insurance. Further yield insurance is divided into crop hail insurance and multi peril crop insurance.
It is regulated by state insurance departments. Narrower variety of perils, such as hail & fire are covered through this insurance.
It covers not only damage done by hail or fire but also flood from excessive rain, as well as drought and diseases or pests infestation.
The market size of America's farm insurance is around $ 11 Billion. There are around 121 businesses that gives emplyment to 4,632 people in the United States.
Biggest agriculture insurance companies are Chubb Limited, Sompo Holdings, Inc., Qbe Insurance Group Limited, Rural Community Insurance Agency Inc. and Cgb Enterprises, Inc.
Almonds, apples, avocados, bananas, blueberries, cabbage, chili peppers, citrus trees, coffee, cranberries, cucumbers, beans, figs, etc. could be secured by taking an insurance.
Thanks for reading!