Ray Grabanski graduated magna cum laude with a bachelor's degree and then a master's degree in agricultural economics from North Dakota State University. He is now the president and lead market analyst of Progressive Ag, a risk management company. At the company, Ray Grabanski helps clients with his expertise in many areas of agricultural business, such as crop insurance.
In general, farmers purchase crop insurance to protect themselves in the event of a loss of crops or a drop in the price of agricultural commodities. These losses can be caused by natural disasters such as hail and floods or by economic forces. There are two general categories of crop insurance: crop yield insurance and crop revenue insurance.
Crop yield insurance comes in the forms of hail insurance and multi-peril crop insurance. As the name suggests, multi-peril insurance covers crops that are damaged by disasters other than just hail. Hail insurance is covered by the private sector, while multi-peril insurance is provided by the federal government.
The second type of crop insurance is crop revenue insurance, which guarantees a price for crops using a market- and commodity-based formula. If crops fall below a certain price, crop revenue insurance will cover the difference for the farmer.
In general, farmers purchase crop insurance to protect themselves in the event of a loss of crops or a drop in the price of agricultural commodities. These losses can be caused by natural disasters such as hail and floods or by economic forces. There are two general categories of crop insurance: crop yield insurance and crop revenue insurance.
Crop yield insurance comes in the forms of hail insurance and multi-peril crop insurance. As the name suggests, multi-peril insurance covers crops that are damaged by disasters other than just hail. Hail insurance is covered by the private sector, while multi-peril insurance is provided by the federal government.
The second type of crop insurance is crop revenue insurance, which guarantees a price for crops using a market- and commodity-based formula. If crops fall below a certain price, crop revenue insurance will cover the difference for the farmer.
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