• / Blog
  • / Crop Insurance: Managing A Key Financial Risk

Crop Insurance: Managing A Key Financial Risk

  • Adroit Insurance and Risk
  • July 18, 2025

Understanding Crop Insurance

Crop insurance can be a great way to manage a key financial risk. However, understanding the variety of cover available from a range of insurers with different areas of speciality can be complex and time-consuming. The distinction between pre-harvest cover and post-harvest declaration cover is crucial for farmers to understand to ensure adequate coverage and compliance with insurance policies.

What Does Crop Insurance Cover?

 

Crop Insurance is designed to help farmers manage the financial impact of certain types of risks including:

  • Hail;
  • Fire;
  • Chemical overspray;
  • Harvested crop, grain or hay; and
  • Damage by livestock

Types of Crop Insurance

  • Yield Protection: Covers losses due to lower-than-expected yields caused by natural events.
  • Revenue Protection: Insures against revenue loss due to price fluctuations or low yields.
  • Multi-Peril Crop Insurance (MPCI): Offers comprehensive coverage against multiple risks, including weather, pests, and diseases.

Who Needs Crop Insurance?

If you farm any of these, you should consider crop insurance:

  • Cotton;
  • Plantation;
  • Broadleaf;
  • Horticulture; and
  • Viticulture.

Key considerations

  • Risk Assessment: Insurance providers use pre-harvest data to assess the risk and determine premiums.
  • Estimation Accuracy: Farmers must provide an estimate of their expected yield, which can be challenging due to variable factors like weather and pests.
  • Early Coverage: This declaration secures coverage early in the growing season, offering protection against pre-harvest losses such as drought, floods, or infestations.

 Crop insurance is an excellent way of managing the financial risks of farming and can be tailored to meet your needs. It’s best to speak to your insurance adviser to discuss your needs and financial goals so the right cover and options can be put into place.

The views expressed in this publication are solely those of the author; they are not reflective or indicative of M3’s position and are not to be attributed to M3. They cannot be reproduced in any form without the express written consent of the author.