Crop insurance is purchased by agricultural producers, and subsidized by the government, to protect against either the loss of their crops due to natural disasters, such as hail, drought, and floods, storm, cyclone or the loss of revenue due to declines in the prices of agricultural commodities.
The two general categories of crop insurance are called
- Crop-yield insurance
- and Crop-revenue insurance.
Major crops paddy, jute, corn, cotton, wheat etc are insurable in most counties where they are grown. For these major crops, a large share of plantings is covered by crop insurance.