Why Crop Insurance Is Essential for Beginning Farmers

Starting your journey as a farmer in the Midwest is exciting—but it's also filled with uncertainties. From unpredictable weather to market swings, your first few seasons are some of the most vulnerable. That’s why understanding and investing in crop insurance is one of the smartest decisions a beginning farmer can make.

This guide will walk you through the basics of crop insurance for beginning farmers, highlight the programs and discounts available, and help you make confident, informed choices as you build your operation.

What Is Crop Insurance—and Why Does It Matter?

Crop insurance is a financial safety net that helps protect your farm from losses due to natural disasters (like drought, hail, or flood) and market-related factors (like price drops).

Without it, one bad year could derail everything you’ve worked for. With it, you gain stability, better planning ability, and access to financing and government support.

Types of Crop Insurance Available to Beginning Farmers

Here are the most common types of USDA-backed crop insurance options available in states like Iowa, Missouri, Illinois, and Nebraska:

Multi-Peril Crop Insurance (MPCI)

• Covers a wide range of perils: drought, excess moisture, disease, pests, and more.
• Coverage levels typically range from 50% to 85% of your expected yield or revenue.

Crop-Hail Insurance

• Often added as a supplement to MPCI.
• Specifically protects against hail damage, which can devastate fields in minutes.

Whole-Farm Revenue Protection (WFRP)

• Covers the entire farm’s revenue rather than specific crops.
• Great for diversified or specialty crop operations.
• Particularly useful for small or mixed-use farms just starting out.

Special Benefits for Beginning Farmers

The USDA recognizes the unique challenges that new and first-generation farmers face—and they offer subsidies and incentives to help.

🌱 Beginning Farmer and Rancher (BFR) Benefits:

• 10% premium subsidy on qualifying insurance plans
• Waived administrative fees on certain policies
• Higher coverage levels allowed without extra cost
• Increased replant coverage

To qualify, you typically need to:

• Have actively operated a farm for less than 5 years
• Not have previous ownership in a significant farming operation

Common Mistakes New Farmers Make with Crop Insurance

Starting out, it’s easy to misunderstand how insurance works—or skip it altogether. Here are a few pitfalls to avoid:

• Waiting too long to apply – Crop insurance has strict enrollment deadlines.
• Choosing the wrong coverage level – Under-insuring can leave you exposed.
• Ignoring whole-farm options – WFRP may be a better fit if you grow multiple crops or raise livestock too.
• Not working with a specialized agent – A local advisor who understands new farmers is critical.

How to Apply for Crop Insurance

• Contact a certified crop insurance agent(like AgriPeril)
• Discuss your farm plan, land, and income goals
• Review available policies and subsidy eligibility
• Select coverage and enroll before USDA deadlines (often tied to planting dates)

📅 Note: Enrollment deadlines vary by state and crop. Don't delay—ask early in the season.

Choosing the Right Partner

When it comes to crop insurance and risk management, having a trusted partner matters. Look for an advisor who:

• Understands Midwest farming

• Offers beginning farmer support

• Walks you through USDA programs and policy comparisons

• Helps you integrate insurance into your broader farm management plan

That’s exactly what we do at AgriPeril.

Final Thoughts: Protect Your First Season—And Your Future

Being a beginning farmer means stepping into a new world of opportunity—and risk. With the right crop insurance strategy, you don’t have to weather the storms alone.

Whether you're growing corn in Iowa, soybeans in Illinois, or mixed crops in Missouri or Nebraska, we’re here to help you start strong and grow smarter.

Let’s Talk

Connect with an AgriPeril advisor today and get personalized crop insurance guidance for your first season. 👉  515-570-8547