Multiple Peril Crop Insurance
What Does Multiple Peril Crop Insurance Mean?
Multiple peril crop insurance (MPCI) is a type of insurance that provides coverage to farmers for a variety of potential losses. These include, but are not limited to:
- Natural disasters
- Crop death
- Market price changes
Qualifying farmers in the United States can acquire multiple peril crop insurance from the Department of Agriculture.
Insuranceopedia Explains Multiple Peril Crop Insurance
Traditionally, multiple peril crop insurance provided financial protection to farmers only for natural perils, such as droughts and diseases. Modern MPCI might also cover other perils that result in financial losses, such as low crop yields.
Multiple peril crop insurance policies are offered through a public-private partnership between the federal government and private insurance companies. Companies authorized to offer this product must sell it to any qualifying farmer.
American farmers can take advantage of a subsidy that makes purchasing MPCI more affordable.