When we hear the word insurance, the first thing we think about is collateral. Guarantee a sense of security from all risks that may occur in the future. What exactly does insurance itself mean? Is there cheap farm insurance in Texas ?
Insurance is a coverage or agreement between both parties, where one of the parties is obliged to pay premiums / contributions. There are various kinds of insurance including life insurance, health insurance, vehicle insurance, agricultural insurance, and so on.
Perhaps for us, it still sounds unfamiliar to hear about agricultural insurance, but this insurance is a necessary insurance for farmers to face possible risks about agriculture that will occur in the future. Cheap agricultural insurance for farmers in Texas is highly sought after.
Cheap Farm Insurance In Texas
Farm insurance is insurance that provides indemnity coverage for the risk of crop failure for farmers in Texas, especially due to uncertain weather conditions. Not only fixing on agriculture, this insurance is also available for fishermen. This cheap insurance is one of the government's efforts to ensure the welfare of farmers in Texas.
The risks covered in this agricultural insurance include crop failure due to floods, droughts, pests and Plant Disturbing Organisms or so-called OTP. Registration for this cheap farm insurance in Texas can begin no later than one month before the growing season begins.
The benefits of this cheap agricultural insurance include:
1. Managing the Risk of Crop Failure
Farmers will get compensation if they experience crop failure.
2. In Order to Continue Production in the Next Season
If the farmer experiences crop failure in the first planting season, then the farmer will not be short of costs to continue the next growing season because he gets one piece of agricultural insurance money.
3. Avoiding Debt to Middlemen
To cover the production costs that there are not a few farmers in Texas who borrow money from middlemen, if the harvest is good, of course this is not a problem. The problem is that if the harvest fails, farmers are forced to sell their crops cheaply in order to pay off debts to middlemen. By participating in cheap agricultural insurance, you can minimize the occurrence of this.
4. Provides a Sense of Calm
By following agricultural insurance, farmers will feel calm in managing their farms, because they already know that they will be compensated in the event of crop failure. Of course, the crop failure caused by unexpected events is not an intentional one.
5. Decent Compensation Value
The provision of compensation is not bad, namely that farmers will get compensation according to the costs incurred per hectare if they experience crop failure during the growing season, by only paying premiums that have been agreed at the beginning of the agreement (with government subsidies).
6. Online Registration
With a practical and online registration system, farmers can access agricultural insurance anywhere.
Premium Scheme In Mechanized Cheap Farm Insurance In Texas
The premium scheme has a number of requirements that must be met by prospective customers. The premium scheme has 2 types, namely self-help premiums and subsidy premiums.
Cheap Insurance In Texas
The self-help premium consists of three schemes, namely:
If the farmer chooses this scheme, then the payment of dues is made in full without the help of other parties.
If you choose a partnership scheme, then farmers will not pay in full alone but are assisted by the partnership company. Payment is made by agreement of both parties.
Schemes of this type are adjusted to the amount of credit carried out by the farmer. So farmers only pay according to the amount of credit only.
Note: Cheap Agricultural Insurance subsidy premiums
Payment through this premium has a higher difficulty than other schemes. Farmers have to go through a series of established regulations.
Why is that? because 80 percent of premium payments are borne by the government and the remaining 20 percent is borne by farmers.
That's the discussion of Cheap Agricultural Insurance In Texas as a design material that can be applied by farmers and governments in parts of Texas in order to help farmers in overcoming and managing agriculture better.