The price of crops can change dramatically from season to season and year to year. Furthermore, crops can fail due to various weather phenomena, such as wildfires, droughts, and hurricanes. However, despite the major risks associated with farming, the right crop insurance can help you protect your farming business from exposure to these risks.

What Is Revenue Protection Insurance?

Revenue protection insurance is insurance coverage that protects your profits, even if something goes wrong from planting season to harvest and sale season. This coverage affords you peace of mind during your day-to-day farming operations, rather than you worrying about the weather and changing crop prices on the commodities exchange market.

Actual Production History and Coverage Amount

The insurance company uses your actual production history, an average of your actual yields over the years, to estimate the worth of your crops. Although their actual market value is not known until they are sold, you need coverage in advance and the insurance company needs to know the approximate value of what it is covering.

Depending on your needs, you can get coverage for 50 to 85 percent of your actual production history price per acre for your crops. Therefore, if over the last 10 years, for example, you have an average production history price of $1,000 per acre on your corn fields, you can purchase insurance to cover from $500 to $850 per acre. If you have a 100-acre corn field, this means you can get $50,000 to $85,000 of insurance coverage.

Purchasing a Package Policy for Convenience

You can purchase revenue protection insurance as part of a package policy that covers your entire farm. Thus, if you grow multiple types of crops, you can buy one revenue protection policy to cover them all. Doing so can save you time.

Using Crops as Collateral for Loans

Revenue protection insurance can be helpful if you need to use your crops as collateral for a loan. For example, if you take out a $50,000 and use your upcoming wheat crop as collateral, you could be in trouble if a flood devastates your crop or the market value falls dramatically. However, revenue protection insurance ensures you receive a stable income regardless of production or market price fluctuations. Moreover, lenders may be much more likely to give you a secured loan, or a loan with a collateral component, if they know your crop collateral has revenue protection insurance, which helps ensure you can still pay back the loan.

Other Insurance Options to Consider

Revenue protection insurance is just one type of business insurance that may benefit you as a farmer. You may find it wise to consider equipment breakdown insurance, commercial property insurance, contents and stock insurance, and a number of other types of business insurance.


Even if you are a seasoned and experienced farmer and have an incredible knowledge about the industry, a freak storm or sudden change in market conditions can have a drastic effect on your farming revenue. Revenue protection insurance ensures that you and your family keep hold of the profits you have worked hard for.