What do crop insurance policies cover?
Farmers participating in federal farm programs are required to carry private crop insurance. In the event of an insurable crop loss, the private insurance company covers a portion of the insurable loss. The Farm Service Agency (FSA) covers the remainder of the loss. Standards for determining a covered loss under crop insurance contracts are essentially the same as under FSA regulations. Crop insurance policies provide coverage for loss caused by adverse weather conditions such as drought or hail. Coverage also exists for crop damage resulting from an unanticipated shortage of ditch water due to drought. Thus, drought is a covered loss under private crop insurance policies so long as coverage exclusions do not apply. Farmer denied insurance coverage In the Longmont farmer’s situation, he had farmed his land for over 13 years. Prior to the drought, there had always been sufficient ditch water and rainfall to adequately water his crops. In the year at issue, the farmer planted barley, bee
