Partnering with a knowledgeable crop insurance team is essential for our farmers and their success. At Farm Credit Mid-America, we provide expert guidance, customized risk management plans and access to innovative insurance programs to help ensure financial stability and sustainability for our customers across our territory.
Crop insurance is the cornerstone of agricultural risk management. It provides financial protection against losses due to natural disasters, pests, diseases and market volatility. Over the past decade, Congress has shifted its focus from disaster relief programs to crop insurance, encouraging farmers to proactively manage risks to their own operations. This shift has led to increased insurance policy holders, with 98% of eligible acres now covered by crop insurance in the United States. Farmers invest significantly in crop insurance, spending around $6.5 billion annually on premiums. Investing those dollars in the right policy at the right coverage level with the right options requires working with a team that specializes in crop insurance and can be there for them every step of the way.
Why Work with an Agent Who Only Sells Crop Insurance?
Expertise and Knowledge
Crop insurance is a complex risk management decision with numerous policy types, coverage levels and options available. There are about 2,700 different combinations of protection in any given county. The rules and regulations governing crop insurance are constantly changing, making it challenging for farmers to stay updated. At Farm Credit Mid-America, our crop insurance team and specialized agents bring expertise and knowledge to the table, helping our customers navigate these complexities and make informed decisions for their operations.
Customized Risk Management Plans
Every farm is unique; with different crops, yields and risk profiles for every single customer. Our crop insurance team works closely with our customer-owners to develop customized risk management plans tailored to their specific needs. This involves analyzing historical yields, assessing current risks and selecting the most appropriate coverage options based on their own specific needs. By understanding the unique challenges and opportunities of each farm, an agent can help customers optimize their insurance coverage and ensure they are protected.
Access to Innovative Crop Insurance Programs
At Farm Credit Mid-America, our crop insurance team has access to a range of innovative programs designed to address emerging risks and provide comprehensive coverage. For example, the area-based Enhanced Coverage Option (ECO) is a policy option that allows farmers to purchase additional coverage beyond the traditional limit at 90% to 95%, providing better protection against low prices and high costs. The Margin Coverage Option (MCO), set to launch for the 2026 crop year, will allow farmers to insure against increases in input costs and decreases in margins. These programs are often complex and require expert guidance to implement effectively. Our crop insurance team of specialized agents can help farmers understand and take advantage of these innovative programs in a way that meets their operation’s needs and current / future goals.
Proactive Crop Insurance Risk Management
Our crop insurance team encourages proactive risk management. Instead of relying on ad hoc disaster payments, customers can develop a comprehensive risk management plan that includes crop insurance as a foundational element. This proactive approach helps farmers manage their risks more effectively and ensures they are better prepared for unexpected events. An agent can also provide ongoing support and advice, helping farmers adjust their coverage as needed and stay informed about changes in the industry. Our agents provide customers with a tailored, one-on-one experience. They don’t work on commission, which means that they are here to develop and design the best risk management plan for each specific customer.
Cost-Effective Crop Insurance Solutions
Crop insurance is not a giveaway program; farmers invest their own money in premiums to participate. However, there are opportunities to reduce costs through subsidies and cost-sharing programs. For example, the federal government has increased cost-sharing for the ECO program, making it more affordable for farmers. Our crop insurance agents can help farmers identify and take advantage of these cost-saving opportunities, ensuring they get the best value for their investments.
Case Study: The Impact of Working with a Crop Insurance Team
To illustrate the importance of working with a crop insurance team, let's consider a case study of a mid-sized row crop operation. The operation grows a variety of crops, including corn, soybeans and wheat. The farmer has been managing the operation for over 20 years and has experienced the ups and downs of the cash grain market.
Initial Challenges
The farmer initially relied on basic crop insurance coverage, which provided some protection, but left significant gaps. In years with severe weather events or market downturns, their farm faced substantial financial losses. The farmer also found it challenging to keep up with the ever-changing rules and regulations governing crop insurance.
Partnering with a Crop Insurance Agent
Recognizing the need for better risk management, the farmer decided to partner with the crop insurance team at Farm Credit Mid-America. The specialized agent conducted a thorough analysis of the farm's historical yields, current risks and financial goals using our proprietary Optimum Tool to analyze federal and private insurance policies. This allowed for the agent to recommend a customized risk management plan that included additional coverage options and innovative programs like the Enhanced Coverage Option (ECO).
Implementing the Customized Personal Plan
With the policy recommendation, the farmer implemented their new customized risk management plan. The ECO program provided additional coverage beyond the traditional 85% limit, offering better protection against low prices and high costs. The crop insurance team at Farm Credit Mid-America also helped the farmer take advantage of cost-sharing opportunities, reducing the financial burden of the premiums.
Results
The new risk management plan proved to be highly effective. In a year with severe weather events, the farm was able to recover quickly thanks to the comprehensive coverage provided by the ECO program. The farmer also benefited from the team and specialized agents’ ongoing support and advice; making adjustments to the coverage as needed and staying informed about changes in the industry.
Looking Ahead
With the launch of the Margin Coverage Option (MCO) for the 2026 crop year, the farmer plans to further enhance their risk management plan. The MCO program will provide additional protection against rising input costs and shrinking margins, ensuring the farm's financial stability in the face of future challenges.
The importance of working with a crop insurance team cannot be overstated. Agents bring a wealth of expertise and knowledge to the table, helping farmers navigate the complexities of crop insurance and develop effective and personal risk management plans. With access to innovative programs and cost-saving opportunities, the crop insurance team at Farm Credit Mid-America plays a key role in ensuring farmers are adequately protected and can manage their risks proactively. As new challenges and opportunities arise, the partnership between farmers and crop insurance agents will continue to be essential in supporting the financial stability and sustainability of the agricultural sector.
Ready to take the first step in creating your own personalized risk management plan? Connect with your local Farm Credit Mid-America crop insurance team today to get started with one of our specialized agents.
Farm Credit Mid-America is an equal opportunity provider.
