As a primary food source for a significant portion of the world population, wheat is an essential crop worldwide. Farmers who invest their time, resources, and energy into growing wheat know that crop insurance is an essential factor that cannot be ignored. Crop insurance refers to the financial compensation given to farmers if their crops experience loss.
Rabi crop 2021 is the wheat season in India, and farmers can benefit from getting a crop insurance policy to gain financial support in case of crop damage or loss. Crop insurance provides a safety net for farmers who may encounter natural or man-made catastrophes that could affect their yields.
Crop insurance is primarily divided into two types: Yield-Based and Weather-Based. Yield-Based insurance provides coverage for crop losses that result from due to factors like pest attacks, natural disasters such as drought and floods, and other yield-reducing risks. The Weather-Based insurance provides coverage for damage caused by inclement weather like wind, hail, or frost.
One of the benefits to farmers of crop insurance for wheat in Rabi Crop 2021 is the compensation that they receive if their crop is affected by any of these factors. In addition to covering aggravating losses, crop insurance also helps farmers to deal with unforeseen events that may result in significant crop failures that would have otherwise put them in significant financial trouble.
Crop insurance claims can be settled either on a floor price or market price basis. The floor price insurance provides compensation based on the minimum support price set by the government of India, whereas market price insurance covers crop losses based on prices in the market.
For those who are interested in purchasing crop insurance for wheat, it’s crucial to understand the criteria that the insurance companies use to determine the premium rates and risk coverage. Factors like location, crop yield history, weather conditions, and the crop’s value influence the premium rate.
In conclusion, crop insurance plays a vital role in protecting the financial stability of farmers who grow wheat. For those who are planning to invest in wheat farming in the Rabi Crop 2021 season, acquiring crop insurance can be an excellent step towards securing their yields and protecting their assets. It is essential to do research on various crop insurance policies to identify the one that best suits your needs.