Insurance for Crop Production Helps you in Dire Emergencies of Crop Failure

Insurance for Crop Production Helps you in Dire Emergencies of Crop Failure

Farmers are true heroes who provide us food to eat and clothes to wear. Even small things like jute bags are made when few farmers cultivate jute on land. Not all farmers can grow all crops. Certain crops are grown in water like paddy rice while some are grown on dry land like cotton. By any chance, when there is any natural calamity that occur their entire effort is lost.

Here are few impacts of natural calamity on crops –

  • Loss of crops that are grown permanently like garlic, rhubarb etc.
  • In case of flood, when farmers are unable to see their land for a long time.
  • When salt content in water keeps increasing, making soil unsuitable.
  • Low income due to low crop production.
  • Loss of income and unemployment results to suicides and starvations.

Thus, keeping in mind the torturous and fearing situation farmers have to face every day government has started a new crop insurance plan under which, farmers can feel secured even if there is loss in income due to damaged crops. Basically, it is a financial safety to them when they are short in income due to the decline of prices of their crops.

It is no similar to regular insurance where you pay a heavy premium every year on a set date. This insurance policy allows farmers to pay when they have good profitable amount and takes returns in the years when they are suffering with heavy losses.

Here are main reasons why farmers should take this policy –

  • Even during difficult times, farmer will not have to struggle harder to achieve income because there is protection for them.

  • If they feel secured then farmers can try something new with their crops instead of cutting corners due to fear of loss.

  • They always have the opportunity to negotiate their borrowing rate so that even during profitable years, they can save some money for them.

  • Since they are getting external monetary help therefore, they can try investing on latest technology.

Most countries have this benefit for their farmers as they know they are the ones who’ve been giving us life indirectly. It is our duty to think about their lives as well.

Category Finance