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What Is Crop Insurance and How Your Cannabis Business Can Benefit

What Is Crop Insurance and How Your Cannabis Business Can Benefit

If you plan to make money by cultivating cannabis or hemp, you need to protect yourself from loss by getting a reliable cannabis crop insurance policy. Unfortunately, not all crop insurance agents sell policies to cultivators in the hemp and cannabis industries. The good news is that 420 Property can help you find a crop insurance agency that welcomes your business.

What Is Crop Insurance?

A crop insurance agency can sell policies that cover various situations. For example, you might buy a crop insurance policy that pays you a specific amount when an unexpected weather event destroys your crops. That might include:

  • Tornadoes
  • Droughts
  • Floods
  • Fires

A policy could also protect you from financial loss when insects destroy your crops. You might be surprised to learn that a lot of insects eat hemp and cannabis plants. Your crop could get ruined or harmed by:

  • Stink bugs
  • Cutworms
  • Budworms
  • Aphids
  • Fungus gnats
  • Corn-borers
  • Crickets

Yes, even crickets want to feast on your plants! Typically, you probably don’t need to worry that your area will have enough insects to cause significant damage. But you never know when a hungry crowd of bugs will show up at your farm. Such events have destroyed farms and even caused regional famines.

You can also find crop insurance agents with policies that ensure you earn a minimum amount of money from your hemp or cannabis plants. A drought might not kill your plants, but it could significantly reduce the size of your harvest or the quality of your flowers. In that case, crop insurance would step in to fill the gap between the money you make and the minimum amount promised by your policy.

Similarly, what would you do if the price of hemp fell between planting and harvesting? Perhaps so many people have gotten into the industry that the product loses value. Maybe someone developed a low-cost way to create CBD in laboratories. Regardless of the reason, the lower price would not destroy your business because crop insurance would ensure you get paid a certain amount.

Why Your Hemp or Cannabis Business Would Need Crop Insurance

Think about how much money you plan to invest in your hemp or cannabis business. Could you survive an entire year or longer without the revenue you expect? Forget about whether you will make a profit. Crop destruction could mean that you don’t generate any revenue. Suddenly, you can’t even afford to make your monthly loan payments, let alone expand your business as planned.

You might think that you don’t need to worry about crop insurance because you cultivate cannabis indoors. Problems can devastate indoor grow operations, too. If insects find their way into your warehouse, they could multiply over the weekend while you’re away. When you come back on Monday, you discover that they have eaten half of your plants.

Unexpected issues with your growing equipment could also hurt the amount of revenue you generate from your indoor cultivation. What happens if your grow lights or automated irrigation system malfunction? Within a matter of hours, your lights could get so hot that they burn your plants. Your irrigation could flood all of your small plants. They might recover somewhat. That doesn’t mean they will meet their full potential.

Don’t think of crop insurance companies as unnecessary expenses. Think of them as hedges against risk. Instead of jeopardizing all of your investment money, you get a chance to secure a minimum payment that keeps you afloat and able to operate next season.

Compare Policies From Crop Insurance Companies

Just because you need crop insurance jobs doesn’t mean that you should accept a bad offer. Just like any type of insurance, you have plenty of options to consider. Policies can vary quite a bit by:

  • How much they cost.
  • What types of events they protect you from.
  • How much they will pay you for lost revenue.

You must compare policies from several crop insurance companies to make sure you get one that fits your budget and goals.

Compare Crop Insurance Companies, Too

Don’t assume that two policies that say the same thing will give you the same level of coverage. Just like with other types of insurance, some companies offer better customer service. You want to find a crop insurance agent that will follow through with guarantees quickly instead of making you jump through hoops.

You might have experienced bad customer service from health or vehicle insurance companies. Dealing with an uncooperative insurance provider is a nightmare when you just want to focus on solving a problem that could ruin your business. You could lose millions of dollars from one year of poor crop performance. You don’t need the stress of arguing with an insurance company on top of the stress of worrying about your investment.

Protect Your Investment With Help From a Crop Insurance Agent

Everyone involved in horticulture needs crop insurance that protects their investments. It doesn’t matter whether you grow heirloom tomatoes or purple haze cannabis. If you rely on income from your crop, you need crop insurance.

The difference between your farm and other farms is that you invest in an extremely high-value crop. Each of your plants might generate hundreds or thousands of dollars in revenue. Very few farmers can say the same. An acre of damaged cannabis is an expensive loss that could ruin your future investment plans. Don’t put yourself in that position. A reliable crop insurance agency can make sure you avoid such devastating loss.

Get a quote from a crop insurance agency today so you can start comparing your options. Ideally, you want an affordable policy that gives you as much protection as possible. You can’t run an indoor or outdoor farm without one.

June 19, 2021Comments Off
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