Crop Insurance Basics for Row Crops

• crop insurance
• row crops
• risk

How does federal crop insurance work?

Policies are sold by approved insurance providers through licensed agents, and the Risk Management Agency sets and oversees the program rules. Premiums are partly subsidized, and the rates and coverage options depend on the crop, county and plan.

RMA's site lists insurance plans, deadlines and tools to look up what is available for your crop and county. Check it for current information.

New and beginning farmers may find that records are thin. Ask your agent and local FSA office what options exist for establishing production history and whether any beginning farmer provisions apply. Check RMA for current rules.

What are yield and revenue protection?

Yield-based plans protect against a drop in production below a guaranteed amount, valued at a set price. Revenue plans protect against a drop in revenue, combining yield and price changes. RMA describes plans such as Revenue Protection on its insurance plans pages.

The exact way guarantees and prices are set is spelled out in the policy and in RMA materials. Ask your agent to walk through a worked example for your farm.

Farm program enrollment through FSA, crop reporting and insurance are separate systems with related deadlines. Keep a calendar so you meet each one.

• Yield protection: guards against low production
• Revenue protection: considers yield and price
• Coverage level: the share of expected production or revenue guaranteed
• Deductible: the part of the loss you carry

How do you choose a coverage level?

Higher coverage costs more in premium and leaves a smaller deductible. Lower coverage costs less but leaves you with more risk. Consider your cost of production, your debt payments, your lender's requirements and how much loss you can absorb.

Run a few scenarios with your agent, including a poor yield, a price drop and both together. See what the policy would pay and what you would still owe.

Note that crop insurance is not a guarantee of profit. It reduces certain risks, and you still bear the deductible, the premium and the effects of other losses.

What records and deadlines matter?

Your production history is a key factor, and accurate yield records help set your guarantee. Sales closing dates, acreage reporting dates and production reporting dates are set by RMA and your policy, and missing one can mean lost coverage.

Keep field maps, planting dates, input records and harvest records. Report acres carefully and on time. Check the official dates every year, since they vary by crop and region.

Keep copies of everything you sign and every report you submit, including acreage reports and production reports, with the date.

What happens when you have a loss?

Notify your agent promptly, as the policy requires, and follow instructions before destroying crops or changing the field. An adjuster will inspect the loss and gather records.

Keep good records, follow good farming practices as the policy defines them, and ask questions about how the claim is calculated. If you disagree with a decision, ask about the appeal process. USDA's National Appeals Division handles some appeals, and RMA lists other options.

What mistakes should you avoid?

Missing deadlines, reporting acres wrongly, assuming everything is covered, choosing coverage only on premium and not understanding the deductible are common. Another is assuming crop insurance covers poor management or practices the policy excludes.

Talk with more than one agent if you want, since agents can offer the same federal products but differ in service. Ask your lender about requirements and read the policy documents.

What should you ask your agent before the sales closing date?

Come with your production records, field maps, planned crops and acres, rented land details and your lender's requirements. Ask which plans are available for your crops and county, what the guarantee and premium would be at each coverage level and what the deductible is in dollars.

Ask how prices for the policy are set, what happens if you plant late or replant, and what practices are required. Ask about options such as add-on coverage and what each costs and covers. Request a worked example with real numbers for a poor year.

Take notes and ask for a written quote. Compare with another agent if you wish.

• Which plans fit my crops and county?
• What is my guarantee and deductible in dollars?
• What are the late planting and replant rules?
• Which dates must I meet?

Last reviewed: November 12, 2026. Written by the Farm Money & Grants Editorial Team. Educational only, not tax, legal or financial advice. See our editorial policy.