Serving Delaware and Maryland Farmers
As a farmer, you know better than anyone that experience counts. King Crop Insurance has been specializing in crop insurance and servicing farmers on Delmarva for over 55 years. We understand the major risks you face and we can help minimize your financial risk by providing comprehensive crop insurance services. Our focus is and always has been exclusively the farming community.
Crop insurance policies are tools that can help farmers. How can a crop insurance policy help you?
- Protect against crop disasters
- Market more profitability
- Improve access to credit
- Guarantee minimum level of income
- Reassure partners and family
- Provide peace of mind
Brief History of Crop Insurance
The federal crop insurance program began in 1938 when Congress authorized the Federal Crop Insurance Corporation. The current program which is administered by the USDA’s Risk Management Agency (RMA), provides producers with risk management tools to address crop yield and/or revenue losses on their farms. In purchasing a policy, a producer growing an insurable crop selects a level of coverage and pays a portion of the premium – or none of it in the case of catastrophic coverage – which increases as the level of coverage rises. The federal government pays the rest of the premium (averaging nearly 60% of the total). Insurance policies are sold and completely serviced through 14 approved private insurance companies. The insurance companies’ losses are reinsured by USDA. Major crops are covered in most counties where they are grown. Most crop insurance policies are either yield-based or revenue-based. For yield-based policies, a producer can receive an indemnity if there is a yield loss relative to the farmer’s “normal” (historical) yield. Revenue-based policies protect against crop revenue loss resulting from declines in yield, price, or both. The most recent addition has been insurance products that protect against losses in whole farm revenue rather than just for an individual crop.
