There is no such thing as private insurance for farmers and yes they do need to be compensated when crops are damaged or their is a drought or anything that affects crop production.
Farmers pre invest heavily every season in order to purchase seed and fertiliser. They also have to invest in heavy farm machinery like tractors, combine harvesters, trucks, seed and fertiliser sprayers and of course the fuel required to drive this machinery.
If there is a drought or any natural disaster there will be no crops for them to sow.
Now one could say that is simply bad luck and leave them to it. After all it is the profession they have chosen and these things happen.
The reality of the situation is that if they are not compensated they will be bankrupt after a couple of bad seasons and leave this profession.
We need more farmers in general so the profession needs to offer some safeguards/guarantees.