TXINS June E-News: Crop Insurance Benefits All Americans, Insurance Coverages for Farmers, Boating Apps for Summer, Texas Trivia Contest, Meet Sharon Martinez, and More!

Crop Insurance Benefits All Americans

Crop Insurance Benefits the Public
Not only does agriculture feed and clothe us, but the food and fiber system accounts for roughly 15% of the U.S. economy. It is in our best interest to have a financially stable agricultural sector that produces the nation’s safe and affordable food and fiber supply and supports the rural economy. That makes necessary the presence of a publicly-supported safety net for farmers, who increasingly face variable weather patterns that challenge the food production system. In the United States, this safety net is crop insurance, whose need is most recently demonstrated by floods in Central and Southeast Texas as well as the widespread drought of 2012.

Crop insurance is the primary risk management tool farmers use to financially recover from natural disasters and volatile market fluctuations. Farmers use crop insurance payouts to pay loans, fertilizer suppliers, equipment providers and landlords; and purchase seed for the next season. Crop insurance gives farmers the confidence to make longer term investments that will increase their production efficiency. Without effective and affordable crop insurance, catastrophic production losses would sap the rural economy by setting in motion a series of harmful events: farm failures and consolidation, job losses, farm-related small business failures, financial stress on rural banks and reduced investment in U.S. agriculture. A financially healthy rural economy requires a financially healthy farm production sector.

By 2050, the United Nations projects a 34% increase in global population and a 70% increase in demand for food. As the number of consumers expands globally and the climate continues to exhibit more intense weather events, there will be increasing pressure on the global food production system.

In the United States, the ability for farmers to purchase crop insurance is this nation’s “insurance policy” against disruption and financial instability in the food production sector. Crop insurance is also critical in helping new and beginning farmers obtain credit, enter farming and become the next generation of producers that meet the growing global food and energy needs.

Crop Insurance Benefits the Taxpayer
Crop insurance is an effective taxpayer investment that helps ensure the stability of America’s producers of food, feed, fiber and fuel supply and promotes rural economic growth.

Absent crop insurance, the cost of natural disasters that cripple America’s farmers would fall directly on the laps of taxpayers, which happened repeatedly before the widespread use and availability of crop insurance. In fact, 42 emergency disaster bills in agriculture have cost taxpayers $70 billion since 1989, according to the Congressional Research Service.

What is Crop Insurance?
There are two types of crop insurance. Multi-peril crop insurance is a risk management tool that producers purchase to protect against the loss of their crops due to natural disasters such as hail, drought, freezes, floods, fire, insects, disease and wildlife, or the loss of revenue due to a decline in price. Crop insurance is federally supported and regulated and is sold and serviced by private-sector crop insurance companies and agents.

Crop-Hail policies, which are not part of the Federal Crop Insurance Program, are sold by private insurers to farmers and regulated by individual state insurance departments. Many farmers purchase Crop-Hail coverage because hail has the unique ability to totally destroy a significant part of a planted field while leaving the rest undamaged. In areas of the country where hail is a frequent event, farmers often purchase a Crop-Hail policy to protect high-yielding crops.

We Are Here for You 

Texas Insurance & Financial Services, Inc. is your trusted advocate. As an independent insurance agency, TXINS represents a wide network of A-rated insurance companies, which allows us to find the best insurance policy to fit your needs and budget. We don’t believe in cookie cutter policies and will customize a plan specifically for you. Your overall satisfaction is our top priority. That’s a promise.

TXINS offers complimentary insurance reviews to ensure you are getting the right coverage for yourself, your family, or your business. To schedule your review, contact us today at 800-541-9849 or via email. Together, we will ensure you are protecting what matters most.

Meet the TXINS Team
Sharon Martinez
Sharon Martinez has been a member of the Traditions/TXINS team for 16 years. She has a large knowledge base of the crop insurance industry.  As department manager, Sharon works directly with farmers to find solutions to any and all problems they face on a daily basis. She is always eager to help others in the office with helpful advice and listening ear. She is also quick to supply a screwdriver when minor repair needs pop up. We are beyond blessed to have Sharon as a part of our team and look forward to many more years with her by our side.

To learn more about Sharon, please click here.

The Farm Service Agency’s (FSA) electronic Hay and Grazing Net Ad Service (eHayNet) allows farmers and ranchers to share ‘Need Hay’ ads and ‘Have Hay’ ads online. Farmers also can use another feature to post advertisements for grazing land, specifically ads announcing the availability of grazing land or ads requesting a need for land to graze. Click here for more info.

My family owns a small farm and I’m going to be taking over more of the daily operations for my father so he can semi-retire. What types of insurance coverages should I have in place to make sure we are fully covered?&nnbsp; – Jason D., Aransas Pass, TX

Dear Jason:

Farms are one of the most important industries in the United States. Running a farm involves a lot of hard work and know-how, and, like any other business, is not without its risks. As the owner of a farm, you can protect yourself, your family and your business by purchasing the right insurance policies.

Some personal insurance plans to consider include:

  • Life insurance: As the owner of a farm, you want to be sure that your family will be able to afford to maintain your property if you should pass unexpectedly. A solid life insurance policy can provide your loved ones with the financial security they need to carry on the family business.
  • Health insurance: Most farmers hire seasonal workers and will therefore be exempt from the requirement to provide healthcare benefits to their full-time employees. The Affordable Healthcare Act, however, will require you to purchase health insurance for yourself and your family.
  • Disability insurance: If you become disabled in an accident and are unable to work, you and your family may face severe financial challenges. This insurance will help you maintain an adequate income while you are unable to work.

As with any business, farmers face liability risks. You can purchase a business insurance policy that meets your farmer liability insurance coverage needs. Some coverage options may include:

  • General liability insurance: If a visitor to your farm is injured on your land or in your home, you may be liable for any resulting medical costs.
  • Product liability insurance: This will protect you if the food or products sold by your farm cause illness or injury.
  • Workers compensation insurance: If a worker on your farm is injured on the job, this insurance coverage will provide compensation for all related medical bills.
  • Commercial vehicle liability insurance: You can insure all your farm vehicles on a single commercial vehicle insurance policy. This will protect you from liability risks if a driver of one of the vehicles injures another person or causes property damage to another.

A solid business farmer insurance policy will also provide you with coverage for loss or damage to your farm’s property and assets. You may want to consider some of the following options:

  • Farm equipment insurance: You will need to be certain that you have comprehensive coverage for your expensive farm equipment such as tractors, threshers and combines. If they are damaged by fire, falling objects or natural disaster, you will be able to replace them.
  • Farm structure insurance: Your farm insurance policy should provide coverage for structures on your land such as barns, silos, pens, chutes, dairy parlors, and corral fencing.
  • Livestock insurance: If you keep livestock, you can purchase insurance coverage so that if they are killed by an event such as an accidental shooting, electrocution, or due to severe weather or problems during transport.
  • Crop insurance: This provides reimbursement if you lose a large portion of your crops due to uncontrollable events such as heavy winds, drought, hail or extreme temperatures.

As you can see, there are many different policies available to protect your farm against loss. Contact your TXINS agent to discuss your specific needs and what policies would benefit your operations. We’ll work with you to ensure you are protecting what matters most.

Do you have a question for our agents? Email it to us! If we choose your question, we’ll send you a thank you gift! Be sure to include your mailing address and phone number in your email.

Did You Know?
– June 20 is Fathers Day. What special things do you have planned to celebrate your dad? Need a little inspiration? Check out this link for fun activities any dad will enjoy.

– Several countries celebrate their flag days in June, including the United States. Sweden, Denmark, Romania, and Argentina. In America, we celebrate every June 14.

– June is National Iced Tea Month. Known as the house wine of the South, iced tea is a must when venturing out into the summertime heat. Whether sweet or unsweet, Southerners love their iced tea!

– June 26 is National Chocolate Pudding Day. This sweet, creamy treat has been a staple in thousands of children’s lunches since the invention of the Hunt’s Snack Pack. Prefer homemade chocolate pudding? Try this quick and easy recipe.

U.S. Farm Facts
– There are approximately 2.2 million farms in America. These farms employ more than 20 million American workers.
– About 97% of all U.S. farms are operated by individuals, family partnerships or family corporations.
– Farm and ranch families comprise just 2 percent of the U.S. population.
– More than 21 million American workers (15 percent of the total U.S. workforce) produce, process and sell the nation’s food and fiber.
– American farms currently produce about 262% more food than they did in 1950.
– About 30% of all U.S. farms are planted entirely for the purpose of food export.
– The U.S. exported $115 billion worth of agricultural products in 2010.
– Careful stewardship by farmers has spurred a nearly 50 percent decline in erosion of cropland by wind and water since 1982.

We LOVE Referrals!

Congrats to Betty Faas of El Campo, TX, our May Referral Program drawing winner! Thanks for your referrals Betty! Good luck in our end of the year drawing happening in December!

If you love Texas Insurance & Financial Services, Inc., tell a relative, friend, or co-worker about us. When they call to receive a quote make sure they let us know that you referred them.

As a thank you, you’ll receive a surprise gift and will be entered into our monthly $50 gift card drawing and our annual Grand Prize drawing for a $1,500 gift card!!!

(Grand Prize drawing will be held on December 3, 2015.)

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