5 Major Advantages of Crop Insurance
Crop yield instability has become a normal condition in India. The fickleness of weather conditions in different parts of the country upsets the whole agricultural economy.
In the coming times, low yields and bumper crops, wet weather and drought or floods and frost, good years and bad years are to be expected in mixed succession.
The loss due to natural calamities is high as Rs. 1,000 crores every year.
Besides droughts and floods, plant diseases have always been a serious enemy to agriculture by destroying standing crops and thereby reducing farmers’ income.
Farmers need to be assured that they will be compensated for such loss of crops and the best way to do that is Crop Insurance.
Here are the 5 major advantages of Crop Insurance to farmers -
Income Stability
Crop Insurance protects the farmers against losses caused by crop failure. It acts like a tool that allows farmers to manage their yield and price risks.
Minimal Debts
Farmers are able to repay their loans even during the time of crop failure with the support of the right insurance partner.
Technological Advancement
Insurance companies work along with Agri platforms who use IOT to enhance agriculture practices and reduce farmers losses. This helps farmers to understand latest technological advancement and improve their crop production.
Yield Protection
Crop Insurance protects farmers against production loss for crops. It also offers preventive planting and replant security.
Provides Awareness
Insurance companies provide awareness campaigns to help farmers understand the effect of natural calamities and also protect their farms.
While natural disasters are unpredictable, farmers can use forecast methodology to understand weather and climate change to protect their crops. So, one of the most important advantage of crop insurance is that farmers get peace of mind.
Since major impact of the natural disasters is on small and marginal farmers, it is necessary to use technology, data and financial services to solve climate based challenges.
