United Country Real Estate 2nd Edition 2024

The three major crops in the USA (corn, soybeans, and wheat) remained pretty stagnant between 1900 – 1924. However, from 1946 to 2000, we’ve seen a progressive yield increase, with the last 20 years being particularly demanding for farmers. That being said, even the top scientists from NASA predict signi fi cant crop yield changes up to 2030. This is due to a number of in fl uences, such as rising temperatures, altered rainfall patterns, and the numerous extreme weather events plaguing everyone from Northern Iowa to Southern Florida. To help farmers and those invested in agricultural real estate weather the storm, crop insurance is offered by a number of government and private entities.

CROP INSURANCE PROGRAMS: A QUICK GUIDE TO ALL YOU NEED TO KNOW

HOW DOES CROP INSURANCE WORK?

DOES CROP INSURANCE REALLY MATTER?

WHAT IS CROP INSURANCE?

The idea behind crop insurance is similar to any other form like dental, health, or vehicle insurance. The government meets with private and public providers to market the insurance. The Standard Reinsurance Agreement (SRA) works with partnerships like the Federal Crop Insurance Corporation (FCIC) to make suggestions. You purchase crop insurance to safeguard your annual yield against unwanted disasters and other losses. For example, an unseasonal freeze wipes out a signi fi cant portion of your anticipated yield, the insurance provider will cover the costs, so you can maintain operations. Farmers and ranchers pay around $6- $7 for this coverage. In South Dakota alone, that is about 18.7 million acres of agricultural land covered by policies valued at $8.3 billion.

All crop insurance is backed through the USDA’s RMA (Risk Management Agency). Both the farm bill and the RMA set the base price, determine any coverage offers, and create new programs whenever an old one is discontinued or no longer provides adequate coverage. get an insider track on what to expect for upcoming years. The reason you would check this is because not all crops are covered in different counties. Sometimes soybeans in one county cannot be covered unless grown a few miles south in another county. You should visit the USDA RMA website to learn more directly and Whenever a farmer has cross county land, they tend to insure through all available partners. Special predetermined written agreements are then brought into play to accommodate this unique situation.

Consider both the micro and macro perspectives of crop insurance. A small family investing in rural real estate to set up a few acres for farming needs crop insurance to cover unforeseen situations like tornados, sudden moisture, infestations, and more. However, from a macro perspective, corn and soybeans accounted for more than half the 2022 U.S. crop

cash receipts and signi fi cantly impacted our global economic positioning.

Our national economy trades, bets against, and supports everything from potential corn crops in Idaho to how many citrus trees there are in Florida. Without crop insurance, we would lose farmers and risk our ability to thrive as a nation.

Sources: choicesmagazine.org, climate.nasa.gov, cropinsurance101.org, rma.usda.gov, ers.usda.gov