PM Fasal Bima Yojana 2025: How Much Compensation Can You Get for Rain-Damaged Crops? Know the Complete Formula

Heavy monsoon rains have devastated standing crops in many parts of India. From Uttarakhand to Himachal Pradesh, visuals of destruction continue to emerge, and farmers are among the worst affected. However, there's a silver lining—the Pradhan Mantri Fasal Bima Yojana (PMFBY) can offer financial relief for such losses.

If your crops have been damaged by recent downpours, it’s not too late to act. The deadline to insure Kharif crops under PMFBY is 31st July 2025, and states like Uttar Pradesh and Uttarakhand have already appealed to farmers to register in time.

Who Is Eligible and What’s Covered?

Under PMFBY, farmers can insure their Kharif crops such as:

• Paddy (धान)

• Jowar, Bajra, Maize

• Urad, Moong, Arhar

• Groundnut, Soybean, and Sesame

The scheme requires farmers to pay only 2% of the premium, while the remaining amount is covered by the central and state governments as subsidy. The goal is to protect farmers from weather-induced disasters, pests, plant diseases, floods, droughts, and even failed sowing.

How Is Compensation Calculated?

Farmers often ask: If I insure my crops, how is the claim amount determined in case of damage?

PMFBY uses a simple but accurate formula based on your historical yields and actual crop output. Here's how it works:

Compensation Formula:

(Threshold Yield – Actual Yield) ÷ Threshold Yield × Sum Insured

Let’s break this down:

• Threshold Yield: The average yield of the best 5 out of the past 7 years for that crop in your area.

• Actual Yield: The actual production per hectare that you reported or was surveyed after the damage.

• Sum Insured: The maximum amount agreed in the insurance policy.

Example Calculation

Suppose over the last 7 years, a farmer’s crop yields (per hectare) were:
1000, 2000, 2500, 800, 700, 3000, 2700 kg

Remove the lowest 2 (800, 700), and average the rest:
(1000 + 2000 + 2500 + 3000 + 2700) ÷ 5 = 2240 kg per hectare

Now assume:

• Actual yield after damage: 3000 kg/ha

• Sum insured: ₹20,000 per hectare

Apply the formula:

(2240 – 3000) ÷ 2240 × ₹20,000 = -₹6785

Since this is a negative value, no claim is applicable in this case. However, if the actual yield was lower than the threshold (e.g., 1500 kg), a claim would be paid proportionately.

When and How to File a Claim?

If your crop is damaged, you must inform the authorities within 48–72 hours. You can do this by contacting:

• Nearest crop insurance center

• Local agriculture department

• National crop insurance helpline: 14447

When Will You Receive the Compensation?

Usually, the payout is released within 2 months after claim submission. In some cases, farmers have received funds within 10 days, depending on the scale of loss and promptness of surveys.

How to Enroll for PMFBY?

Farmers can register through:

• Bank branches

• Common Service Centres (CSCs)

• Online portal: https://pmfby.gov.in

Make sure you have these documents:

• Aadhaar card

• Land ownership proof or lease documents

• Crop details

• Bank account information

Final Word: Secure Your Crops Before July 31

If you haven't yet insured your Kharif crop under PM Fasal Bima Yojana, you still have time. For just 2% premium, you can protect your entire season’s harvest from weather-related losses. Don’t wait for disaster to strike—secure your field today.