Crop Insurance Basics

What is crop insurance?

Crop insurance is a set of policies that may pay a farmer when a covered cause of loss reduces yield, revenue or both. In the United States, many federally supported policies are sold by private agents and overseen by the USDA Risk Management Agency.

The USDA publishes a beginner's guide that explains the basics. Policies, crops covered, prices and deadlines vary by county and by year, so treat any general article as a starting point only.

Insurance is meant to protect against loss, not to guarantee a profit.

Who sells it and who sets the rules?

Policies are generally sold through licensed crop insurance agents who represent approved companies. The rules, rates and many details are set by the federal program, which is why agents can usually give the same basic terms for the same policy.

Agents do differ in service, in how well they know your crop, and in how they help with claims. Ask neighbors who they use and why.

The Risk Management Agency's website has an agent locator and information on available policies.

• Ask neighbors who they trust
• Ask about experience with your crop
• Compare how agents help with claims

What do policies generally insure?

Some policies insure yield, meaning how much you harvest compared with your history. Others insure revenue, which combines yield and price. Some insure a whole farm's revenue rather than a single crop. Each has different choices about the level of protection.

Not every crop has coverage in every county. Some specialty and diversified options exist for farms with a range of products. Ask an agent which policies are offered where you farm.

Premium support, subsidy levels and coverage options are set by the federal program and change, so do not rely on figures quoted in older articles.

• Yield-based protection
• Revenue-based protection
• Whole-farm revenue options
• Coverage for certain specialty crops
• Possible coverage for pasture, rangeland and forage in some areas

What records and deadlines matter?

Insurance depends on records, such as past yields, acreage and planting dates, and on deadlines for signing up, reporting acres and reporting losses. Missing a deadline can mean no coverage or no payment.

Because dates differ by crop and county, never assume a date. Ask your agent for the calendar that applies to you, and mark it on your wall.

Keep scale tickets, sales records and field maps. If you are new to farming, ask what substitutes are allowed when you have no history.

• Past yield records or scale tickets
• Acreage and planting dates
• Field maps and sales records
• Local calendar of sign-up and reporting dates

What should you do after a loss?

Contact your agent right away, since there are usually short windows for reporting. Do not destroy damaged crops or change fields until an adjuster has told you it is acceptable. Take photos and keep records.

The adjuster will inspect the loss and the claim is calculated under the policy's terms. If you disagree, ask for an explanation and your options for review.

Loss can be stressful. If you are overwhelmed, reach out to your local FSA office, extension educator or a trusted person. Mental health matters too, and 988 is available by call or text in the US if you need to talk.

How does it differ from other disaster help?

Insurance is bought in advance. Other programs, such as certain disaster assistance programs, may help with losses of crops, livestock or land after certain events, and often depend on eligibility and records. Programs change.

Ask the USDA Farm Service Agency about what may be available for your farm and what records they need. Some assistance programs consider whether you had insurance.

• Insurance: bought before the loss
• Disaster programs: may apply after certain events
• Ask FSA which records you need

Is it worth it for a small farm?

That depends on your crops, your risks and your finances. A small diversified farm may find it hard to match a policy to what it grows, while a farm with a large single crop may find it fits well. Weigh the cost of premiums, the level of coverage and the chance of the losses that matter to you.

Ask an agent to show examples for your crop and county, and ask your extension educator for an independent opinion.

• Which crops do I grow, and are they covered here?
• What would a bad year cost me?
• What would premiums and deductibles be?

Last reviewed: November 12, 2026. Written by the Rural Farm Life Editorial Team. See our editorial policy.