Farm Insurance

Maryland Department of Agriculture is committed to working with the state's farmers to manage the risk associated with farming in the 21st Century. Financial risk is a key concern for our state's farmers.

The Maryland Insurance Administration has produced a consumer's guide that focuses entirely on insurance issues relating to agricultural operations. "The Consumer's Guide to Farm Insurance in Maryland" is intended to help farmers understand their coverage and options for property insurance, including liability and crop insurance resources. The guide provides definitions of terms and types of coverage, purchasing tips, contact information, and frequently asked questions about farm insurance.

The Insurance Administration also has provided a listing of companies with approved farm insurance policies in Maryland.

Another key element of risk reduction for farmers is crop insurance. Crop insurance, subsidized and regulated by the USDA-Risk Management Agency, is an important tool in managing financial risk associated with farming. It is intended to help farmers survive disasters and return to profitability, providing they purchase an adequate amount of protection.

Maryland farmers underutilize federally subsidized crop insurance compared to counterparts in other parts of the country. To improve participation rates, USDA-RMA has partnered with MDA and the University of Maryland since 2002 to increase awareness and understanding of crop insurance. Participation is increasing and Maryland farmers are reaping the returns. In 2004, enrollment was up 14.3 percent from 2003. The previous year, there was an 11 percent increase in enrollment.

In 2003, Maryland farmers received more than $10.8 million in crop insurance payments or about $3 for every $1 spent by farmers on crop insurance premiums. In 2002 after an extreme drought destroyed many crops, farmers received more than $23 million or $7.70 for every dollar invested on premiums.

In 2007, farmers invested more than $14 million in premiums for more than 5,200 crop insurance policies covering $250 million in liabilities. Because of losses associated with the severe drought in 2007, these policies paid more than $35 million to farmers.

For more information on crop insurance issues, contact Mark Powell at MDA, (410) 841-5770, or by e-mail at powellms@mda.state.md.us.

Crop insurance in Maryland is offered by local agents of three companies:

  • Ace Property and Casualty Insurance Co. (Rain and Hail L.L.C.), 1-800-776-4045
  • Rural Community Insurance Services, 1-800-451-3836
  • American Agri-Business Insurance Company (ARMtech Insurance Services, Inc.), 7101 82nd Street, Lubbock, Texas 79424, Toll-Free: 1-800-335-0120, Phone: 806-473-0333, Fax: 806-473-0334

   


Maryland farmers discuss how they manage risk.

Click on the video links below for interviews with these farmers.