Named Peril Crop Insurance - Private Insurance
Examples: Hail or Fire Insurance
Multi Peril Crop Insurance (MPCI) - Federal Government
Crops: Cotton, Wheat, Barley, Alfalfa, Corn, Sorghum & Pinto Beans
A little History
Congress first authorized Federal crop insurance in the 1930s along with other initiatives to help agriculture recover from the combined effects of the Great Depression and the Dust Bowl. The Federal Crop Insurance Corporation (FCIC) was created in 1938 to carry out the program. Initially, the program was started as an experiment, and crop insurance activities were mostly limited to major crops in the main producing areas. Crop insurance remained an experiment until passage of the Federal Crop Insurance Act of 1980.
In 2000, Congress enacted legislation that expanded the role of the private sector allowing entities to participate in conducting research and development of new insurance products and features
Agriculture is the single most important industry on this planet. Most everything we use, eat, and drink comes from an Agriculture producer. With the world continuing to grow and the demand for agriculture products rising each day, the need for agriculture producers is continuing to grow each and every day. Even with Agriculture being such and important factor to everyday life, it is a fragile industry. A few bad years, or even just one for some producers can mean the difference between staying in business or losing the family farm. Whether that bad year is due to drought, a fire running through the crops, excess rain preventing you from getting in the field, a tornado that carries away a years worth of hard work, or even the market crashing forcing you to sell at a low price, all these factors can ruin a producers life work in a heartbeat. All these risks can be on the back burner of your mind with Crop Insurance. Crop Insurance allows you to protect yourself against unavoidable causes of loss that would otherwise put a large financial dent in your operation, and sometimes a fatal dent. With crop insurance you are able to stay in business and continue to help provide the world with the essential products that we all need.