Area Yield Index Insurance focuses on crop losses across an entire region, rather than individual farms. It offers protection if the average yield in your area falls below a certain level due to weather events like droughts or floods.
How it Works:
Regional Data: Experts collect harvest data from farms throughout your region over many years to establish the average yield.
Your Plan: You choose a coverage level. This is a percentage of the average yield. For example, you might choose to be covered if the regional yield falls below 80% of the average.
Tracking Yields: Crop cuts are conducted to estimate the actual yields that a farmer will harvest.
Getting Paid: If the average regional yield falls below your chosen coverage level, you receive a payout. This helps you recover even if your farm wasn’t as severely impacted.
Protection for Everyone: Offers a safety net when widespread weather events impact the whole community.
Reduced Costs: Avoids individual farm inspections, making it more affordable.
Provides Stability: Helps farmers plan ahead knowing they have some support if a disaster strikes the region.
