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Crop Insurance

   Also found in: Financial, Wikipedia 0.01 sec.

A contract of indemnity by which, for a specified premium, one party promises to compensate another for the financial loss incurred by the destruction of agricultural products from the forces of nature, such as rain, hail, frost, or insect infestation.

The federal government, acting through the Federal Crop Insurance Corporation, an agency of the department of agriculture, sponsors such insurance. By improving the economic stability of agriculture, crop insurance promotes the welfare of the nation.

Cross-references

Agricultural Law.



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Crop insurance protects farmers from financial losses that result from natural causes such as drought, excessive moisture, hail, wind, frost, insects and disease.
[ILLUSTRATION OMITTED] Crop insurance, written under the jurisdiction of the National Crop Insurance Services, covers growing crops against perils such as hail, wind and fire.
The new policy, available once the multi-peril crop insurance policy is with JDRP, insures yield shortfalls below contracted volumes in the event the price to replace the corn rises above the federal crop insurance coverage.
 
 
 
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