Navigating Catastrophic Crop Insurance in Maryland
Maryland is renowned for its agricultural output. It cultivates a variety of crops, including soybeans, wheat, corn, watermelon, apples, and grapes. However, no growing season is without its challenges or occasional setbacks. Thankfully, catastrophic crop insurance offers financial protection for farmers in Cumberland, MD.
Understanding Catastrophic Crop Insurance
Catastrophic crop insurance, or CAT insurance, is part of the federal crop insurance program. This insurance type compensates farmers who experience a crop yield of 50% or less. It covers losses caused by factors such as fire, extreme weather conditions, plant diseases, and damage inflicted by insects and wildlife. However, it’s essential to note that these types of damage are only compensated for if they physically affect the crop. Catastrophic crop insurance does not cover losses due to the inability to reach the market, even if the cause is a covered loss such as a fire.
Catastrophic crop insurance does not have monthly fees; farmers pay a $300 administrative fee per crop. Despite its affordability, this policy might not be ideal for many farmers because compensation is only available once over 50% of the crop is lost. Other crop insurance policies allow you to choose your level of compensation. These policies are pricier than catastrophic crop insurance but offer significant compensation if you encounter a poor growing season.
Find out more about Crop Insurance with Knippenberg Insurance Inc.
At Knippenberg Insurance Inc., we provide personalized assistance to farmers in Cumberland, MD, helping them assess their insurance options and make informed decisions. Feel free to contact us to find out more or to get a quote for an insurance policy.
