Out of the many insurance covers, the agricultural insurance is one which is extremely beneficial for the farmers, the food providers of our nation. Now, what exactly is agricultural insurance?
Agricultural insurance is the one that helps to protect against any kind of loss or damage to the crops or the livestock on a farm.
Sounds like a very effective method of providing value to the poor farmers, doesn't it?
Now the question arises that why should a farmer opt for agricultural insurance?
Agricultural Insurance not only does protect the farmer in case of shocks but also encourages them to invest more and more. This article discusses in details about how beneficial agricultural insurance is to a farmer.
Some Of The Possible Threats On Farms
The agricultural land, that is taken care of by our hardworking farmers, is prone to a large number of adversities and a large number of natural disasters befall them. Some of the most common issues that are faced regarding farms are:
- An increased level of salinity of the soil making it unfit for agricultural use.
- Floods tend to wash away the soil. Stagnant water due to lack of proper drainage system during the floods also ruins the crops.
- The decrease in the rate of production.
All these problems directly affect the livelihood and the source of income of the farmers. Having an agriculture insurance saves their back from such adversities.
Did you know that a major part of the Indian population still depends on farming to earn their livelihood? An agricultural insurance saves them and has their back against all the unforeseen setbacks that they might come across. There are a large number of methods in which an agricultural insurance benefits a farmer. Discussed below are some of them.
- Stability in income: An agrarian insurance protects the farmers against the losses which are caused due to the failure of the crop. This insurance is like a tool which allows all the farmers to compensate their loss by managing their yield and the other price risks.
- Reducing debts: When the farmers have the support of a trusted insurance partner, they find it easier to repay all the debts and loans even when there is a crop failure.
- Development of technology: Now that science has taken everything under its wings, why spare the fields? The insurance companies work hard in order to enrich and improve the technologies and the agricultural practices that are also instrumental in reducing the loss of the farmers. In this manner, the farmers getà¥¤ a command over the latest technologies and can work to improve the quality of their crops.
- Awareness: The insurance companies also conduct many campaigns to educate the farmers to understand and anticipate the possibilities and the effects of the different natural calamities. Having a better knowledge and ability of prediction of this will help them to protect their farms.