Farm insurance, also known as farming insurance, is insurance specially designed for the farming sector. There are two different kinds of farm insurance available today. Traditional farm insurance will compensate insured farmers only once the losses have been calculated and documented. For smaller, poorer farmers, this is hardly ideal as these farmers tend to live on shoe-string budgets and will not be able to afford to wait for the losses to be documented before claims are settled. "Index insurance", on the other hand, was designed with poor farmers in developing countries in mind. This variant of farm insurance is linked to rainfall and flooding to facilitate quicker processing of claims when farmers lose crops. Smaller farms can often not get insurance against failed crops due to their size, but climate change has made farm insurance a necessity. Although "index" will be cheaper than conventional insurance, there are certain criteria that need to be filled before a farm qualifies.