In 2018, farmers invested more than $3.6 billion to purchase more than 1.1 million crop insurance policies, protecting over 130 different crops.

Crop insurance policies protected more than 90 percent of planted cropland in 2018. Since 2000, farmers have spent $54 billion out of their own pockets to purchase crop insurance. Family farms make up 96 percent of America’s 2.1 million farms and 89 percent of ag production.

Two types of crop insurance are available to farmers in the United States: Crop-Hail and Multiple Peril Crop Insurance (MPCI).

Crop-Hail
Crop-Hail policies are not part of the Federal Crop Insurance Program and are provided directly to farmers by private insurers. Many farmers purchase Crop-Hail coverage because hail has the unique ability to totally destroy a significant part of a planted field while leaving the rest undamaged. In areas of the country where hail is a frequent event, farmers often purchase a Crop-Hail policy to protect high-yielding crops. Unlike MPCI, a Crop-Hail policy can be purchased at any time during the growing season.

Multiple Peril Crop Insurance (MPCI)
MPCI policies must be purchased prior to planting and cover loss of crop yields from all types of natural causes including drought, excessive moisture, freeze and disease. Newer coverage options combine yield protection and price protection to guard farmers against potential loss in revenue, whether due to low yields or changes in market price.