Farmer Insurance
There are many types of risks that are associated with farming and many times, due to these risks, the farmer suffer great losses which takes years to get recovered. It is said that farming is one of the riskiest occupations that a person can have. Thus, it is very necessary that the various risks associated with farming are properly insured. This is made possible by way of farmer insurance where the farmer is eligible to get the compensation for various types of risks covered.
VARIOUS RISKS COVERED
There are many types of risks associated with the farming. One of the biggest risks is the crop failure. There can be many reasons for crop failure. This can be the lack of adequate water supply or rains, any disease affecting the whole crop, fire, weather damage etc. Drought is one of the main reasons of crop failure world wide, especially in those countries where the agriculture rely heavily on rainfall like India. Whatever is the reason, one thing is sure and it is that the farmer would have to wait for one year or so, depending upon the crop, to get the crop again. Up to such time, he has to wait. In this period, the farmer requires to raise his family, buy the seeds again including the fertilizer etc. The farmer insurance helps a farmer to get the compensation for the crop failure and thus, he can easily pass his life by getting the claim. His livelihood is continued. So, it is very much needed that the farmer insurance should comprehensively cover the crop failure. If the prices of the crop goes down, it is also included in the crop damage and thus, the farmer is eligible to get the compensation for this too so that he can pass a peaceful life. This is the reason why the farmers insurance policy must include the crop damage on the basis of lowering of the market prices of crop. The next important cover that is provided under the farmer insurance is the coverage for the various types accidents that are associated with farming. Many times, big bodily injuries are caused to a farmer when he is in the field and this can also render a farmer unable to continue further. In such circumstances, the farmer insurance provides a farmer the necessary support till the time he comes back to field.
THE GOVERNMENTS ROLE IN FARMER INSURANCE
It is the duty to of government in each country or state to formulate specific policies regarding the farmer insurance so as to help the farmers in the hours of need in the maximum possible manner. No doubt, many steps have been taken regarding this and as a result, the farmers are now feeling secured as they have got farmer insurance. The policy of government can differ from one country or even from one state to another, like in U.S. In many countries, the various financing institutions like banks etc are required to provide for the compulsory farmer insurance at the time they are financing to the farmers. This not only helps them to recover their amount but also helps a farmer to get the money in the hours of need. In the United State, the farmer insurance got major boost by setting up of Federal Crop Insurance Corporation in the year 1938. The farmers were benefited greatly by the insurance programs provided after the Great depression. The above corporation was totally altered in the year 1980 when the Federal Crop Insurance Act was passed. More crops were included in the insurance program so as to help the farmers in getting wider coverage. In the year 1994, the farmer insurance acts in U.S were further expanded and Federal Crop Insurance Act was formed. The farmers have access to greater coverage in times of crop failure due to rain or drought.
The Risk Management Agency, also known as RMA, which was formed in the year 1996, in order to finalize the contracts with the various private insurance companies to provide farmer insurance. RMA has been entrusted with the duties of reviewing the various farmer insurance policies that have been formulated by the private insurance companies. This has been done to ensure that the farmers get the right compensation in the event of crop failure, accident etc. A person should understand that in the United State, even if a person has obtained a farmer insurance policy from a private insurance provider, it is always underwritten by the government. So, it can be rightly said that the government is playing active role in the field of farmer insurance. In the United States as well as other countries too, there are different types of crops that are grown in different states and it is quite obvious that the insurance needs of these different states is different. For example, in the northern states of United States, the crops are required to be adequately covered against the frost, as it is quite common here. Similarly, in the Southern states, the crops are damaged basically due to the hurricane etc. Thus, the crop needs to be insured comprehensively against the possible damage by hurricane, tornado etc. The prices of crop in each state witness different levels of downfall. This also calls for different farmer insurance policies in the different states.
SUMMING UP
Farming is the occupation that attracts many types of risks. All these risks can easily damage the crop badly and in such circumstances, the farmer loses his livelihood. It is in these circumstances that the farmer insurance plays an active role. The farmer is compensation enough so as to carry on his activities for one year when he again can raise the crop. In the event of an accident, the crop also suffers and the farmer insurance also provides for this. There are of course many steps that have been taken in order to help the farmers tiding over such difficult times and as a result, various types of coverage have been provided under the farmer insurance. The various provisions under the farmer insurance differ from one state to another, as the risks associated with the crops in different states are different.
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