What to Know about Farm and Crop Insurance

IN ILLINOIS

Facts about Farm and Crop Insurance in Illinois

Your farm is more than just your business. It is your home. Farm insurance is designed to cover against your farm’s liability risks and compensate you for loss or damage to your property. Crop insurance, on the other hand, is federally subsidized coverage that insures against loss or damage to your crops due to severe weather events like drought, floods, or tornadoes. It can also cover against revenue losses if the market value of the commodities you are growing plummets. Most farmers in Illinois purchase both types of coverage.

More Illinois Farm and Crop Insurance Facts

  • Around 54 tornadoes touch down in IL each year. These storms can destroy crops, damage farm machinery, and kill livestock.
  • Heavy rains and floods in spring 2019 caused planting disruptions and revenue losses for many Illinois farmers.
  • There are currently 72,200 farms in Illinois. These farms average 358 acres each and make up 75% of the state’s total land area.
  • Farms in Illinois generate more than $19 billion in annual revenue.

Cost of Farm and Crop Insurance in Illinois

Your cost for farm insurance can vary according to the size of your farm, the kinds of buildings on your land, the number and type of livestock you are raising, and the value of your farm machinery.  Your rate for crop insurance, on the other hand, depends on factors such as the types of crops you are growing, the number of acres each type of crop makes up, the percentage of reimbursement you wish to buy, and whether you are including coverage against price fluctuations. A local independent agent can help you review costs for various levels of coverage.

How Illinois Farms Compare to Neighboring States 

 
Illinois Indiana Kentucky Iowa Missouri Wisconsin
Number of acres covered by crop insurance 19.4
million 		9.5
million		 3.5
million		 21.8
million		 9.7
million		 5.2
million
Amount paid for crop insurance coverage, 2018 $277.6
million		 $154.3
million		 $51.8
million		 $289.5
million		 $132.2
million		 $71.2
million
Amount of coverage purchased $10.6
billion		 $5.1
billion		 $1.6
billion		 $12
billion		 $3.5
billion		 $2.4
billion
Average cost per acre $546 $537 $457 $550 $361 $462


Why Choose an Independent Insurance Agent?

  • Independent insurance agents live and work in your community.
  • These agents can shop around to help you find the best policies.
  • Your agent can provide one-stop shopping for all your insurance needs.

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What Does an Illinois Farm Insurance Policy Cover?

Farm insurance is designed to cover your farm, both as your home and as your business.  A typical farm insurance policy in Illinois will cover the following:

  1. Your farm buildings: Covers the cost of repairing damage to the structure of your farmhouse as well as to other buildings on your land, including barns, sheds, silos, garages, and other storage units.
  2. Your farm machinery: Covers the cost of repairing or replacing farm machinery like tractors and balers if they are damaged or destroyed by a covered event.
  3. Your liability risks: Covers your personal liability risks as well as your farm business’s liability risks, such as if a worker is injured on your land or if a product your farm produces causes others to get sick.
  4. Your other farm property:  You can also get specialized coverage for other farm property such as livestock and irrigation systems.

What Does an Illinois Crop Insurance Policy Cover?

Crop insurance is federally subsidized insurance that is designed to cover the commodities you grow on your farm. A typical crop insurance policy will offer the following types of coverage:

  1. Multiple peril crop insurance (MPCI): This provides coverage if your crops are lost due to a wide range of risks, such as: severe weather like frost, wind, and hail; flooding or drought; wildfires; plant diseases; and insect infestations.
  2. Crop-hail insurance: Hail is a significant problem in Illinois. This offers protection for high-yield crops against the risk of hail only. This coverage, which typically comes with a low or no deductible, costs much less than MPCI insurance but offers more limited coverage.
  3. Crop revenue insurance:  This is designed to protect your farm from revenue losses due to an extreme drop in the price of crop prices for the commodities you grow. It also protect against financial losses if you have a lower-than-expected crop yield.

Top Insurance Companies That Support Independent Agents in Illinois

There are currently 1,184 independent insurance agencies in Illinois that are ready to help. These agents can answer your insurance-related questions, explain your coverage options, and assist you with finding the best farm and crop insurance policies to meet your coverage and budgetary needs. Contact an insurance agent near you to start comparing customized farm and crop insurance quotes from top-rated insurance companies like these:

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