Crop insurance helps protect a farmer's income if a crop fails or prices fall due to covered events.
Crop insurance is a risk-management product that indemnifies producers against yield or revenue losses from covered perils, often supported by federal programs.
Insurance can stabilize income and may make lenders more comfortable, since it reduces the risk that a bad year wipes out repayment ability.
If drought cuts a covered crop's yield, crop insurance may offset part of the lost revenue.
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