Crop Insurance Basics: The Process in Four Easy Steps

From historic flooding and drought to derecho damage and other unpredictable events, crop insurance policies make a difference for farmers adversely impacted by weather or markets. Wondering just how big a difference? In the 2025 crop year, farmers purchased 2.54 million crop insurance policies that provided $159.3 billion in liability protection.

The crop insurance process is critical in weathering the storms of agriculture, but it can feel a little overwhelming. We’re going to break it down so you can talk to your agent with confidence. That includes the four basic steps in the annual crop insurance process:

1. Finding an agent, selecting coverage and completing the application.
2. Meeting coverage reporting requirements and paying your premiums.
3. Submitting a claim.
4. Reviewing and renewing coverage with your agent annually.

Ready for more details? Read on to get the full picture of what to expect in the crop insurance process.

What are some crop insurance basics?

Crop insurance helps protect American farmers and ranchers from the impact of changing markets and unpredictable weather. Coverage is intended to help those in agriculture recover from unexpected financial perils. As a result, farmers and ranchers can continue to provide essential food, fuel and fiber season after season.

Federal crop insurance coverage (like multi-peril crop insurance) gives farmers and ranchers access to subsidized standardized offerings. That means the federal government shares the cost of insurance with policyholders. Federal crop insurance policies can only be written by approved insurance providers (AIPs). Those insurance companies may offer private products to supplement coverage options for farmers and ranchers.

How does the crop insurance process work from start to finish?

There are four main steps in the crop insurance process.

1. Choose a licensed crop insurance agent, select coverage and complete the application.

You’ll never go through the crop insurance process alone. Your licensed crop insurance agent will be there to help. They’ll answer your questions, weigh your options with you and help you find the right coverage options.

1. Complete coverage reporting requirements and pay your premiums.

Once your application is accepted, you’ll need to submit some reporting information. Be as accurate as possible, because underreporting can leave you with coverage gaps, while overreporting may result in higher premiums.

1. Submit a claim.

After potential damage or loss, you’ll work with your agent to alert your insurance provider. This must be done in a timely manner. After the damage is determined and verified by an insurance claims representative, it’s possible that you may receive payment.

1. Review and renew coverage with your agent annually.

Your crop insurance needs may change over time. You may also see policy updates and subsidy changes over time. It’s important to meet with your agent annually to determine coverage needs and make updates.

Let’s dive a bit deeper.

1. Complete your crop insurance application.

Properly completing your application is the first and most important part of the crop insurance cycle. It is vital to complete the form accurately and sign it in a timely manner.

You’ll start the application process by meeting with your crop insurance agent to review your coverage, options and endorsements. You’ll also want to review annual actuarial documents from the USDA’s Risk Management Agency (RMA).

Once you’ve selected coverage, complete and sign your insurance application no later than the sales closing date specified in the actuarial documents. It will vary by crop and county. Work with your agent to verify the named insured, entity type, identification number(s), crops, coverage and options are valid for how your crop(s) will be marketed for the year. Then, your trusted crop insurance agent will submit your application. From there, the insurance provider will verify the application information, accept and process the application, and issue a summary of coverage to the policyholder and the agent.

2. Complete production reporting to receive coverage summary and billing statement.

The next step in the process is required reporting. Make sure to report accurately, as underreporting can leave you with coverage gaps and overreporting may result in higher premiums.

The production report tells your insurance provider about last year’s harvest. The insurance provider uses this information to establish an approved annual production history (APH) yield. Said another way, it’s a historical view of how many acres you planted and how the crop on those acres performed.

Acreage reporting tells your provider about what’s happening on your farm this year. After planting, you’ll report:

• All planted acres (including insurable, uninsurable and late planted).
• Prevented planting acres.
• The practice and type of crop.
• Date of planting.
• The percent share the farmer has in the acres and applicable shareholder information.

After reporting is complete, you’ll receive a summary of your coverage and a bill for your premiums.

3. Submit claims.

This is when your crop insurance goes to bat for you. In the event of crop damage or loss, a written notice of loss of production needs to be filed. This must happen within 72 hours of initial discovery of loss, but no later than 15 days after the end of the insurance period. Check your summary of coverage for additional requirements and deductible information.

After the damage or loss is determined and verified by an insurance claims representative, your insurance provider may cut an indemnity check, minus any monies owed on the policy, within 30 days.

4. Review or change coverage.

RMA may make changes to federal crop insurance policies, so it’s important to meet with your crop insurance agent annually to review coverage and make any necessary updates.

These changes will be available on RMA’s website no later than the contract change date. They will also be provided in writing no later than 30 days prior to the cancellation date for the insured crop.

Crop insurance basics: The bottom line

Crop insurance doesn’t have to be overwhelming. With a reliable insurance provider, trusted agent and proper preparation, crop insurance can be exactly what it’s intended to be – a safety net when times get tough.

Not sure where to go from here? Explore frequently asked crop insurance questions or find a trusted independent ProAg agent.