Last year, when a drought hit Indiana farms, many farmers relied on insurance payouts to protect them from losing money.

The lack of rain caused crops, especially corn, to dry out and die early, with some Johnson County farmers harvesting less than one-fourth the crop they normally bring in each year.

Farmers who didn’t have crop insurance faced financial losses. Depending on their policy’s coverage, farmers can get insurance payouts for the value of up to 85 percent of their average crop if natural disasters ruin the crop or prevent planting. The insurance is optional, and farmers without it can end up paying for their expenses out of their low earnings.

Source - http://www.dailyjournal.net/