4 Important Coverages to Have on Your Farm & Ranch Insurance

If you’re like most people, you insure every part of your life — your home, your vehicle, your health, etc. So if you’re a farmer or rancher, it’s only logical to insure your business as well.

But the world of farm and ranch insurance is much more complex than you might think. Each person’s exact coverage needs are different, but generally speaking, the following four are essential.

1. Liability Coverage

When you think of farm and ranch insurance, you probably think of insuring your crops or property against damage. But like other business owners, farmers and ranchers need liability coverage. This type of insurance covers you if a person is injured (or their property is damaged) while at your farm.

For instance, if a visitor is kicked by one of your horses and needs to go to the hospital, your liability insurance would cover medical bills. Similarly, if you operate a seasonal pumpkin patch and a child gets injured, liability coverage will protect you.

2. Crop and/or Livestock Insurance

If your livelihood primarily comes from the crops you grow or the animals you raise, you need crop or livestock insurance. This type of farm and ranch insurance will reimburse you for some types of losses:

• Losses of crops or livestock due to fire

• Stolen animals

• Animal death or crop loss due to unexpected weather events

• Animals killed or crops damaged during transit

Not all of these policies are the same — some may cover losses that others don’t. Always make sure to carefully read any policy you’re considering before you commit to it.

3. Outbuilding Insurance

You probably already have insurance on your home. But what about your barns, storage sheds, and other buildings? When you have outbuilding insurance, you can be reimbursed if important buildings are damaged and destroyed. Consider outbuilding insurance if you have any of the following:

• Barns

• Stables

• Crop storage sheds

• Structures for cold storage

• Motors, water pumps, and other outdoor structures used to operate outbuildings

Most standard outbuilding policies protect you against a wide range of damage. But many insurers also offer expanded coverage that will reimburse you for additional unexpected losses.

4. Tractor and Equipment Insurance

You rely on your equipment to run your business. So if your tractor, irrigator, or other key piece of equipment breaks down, you need to take action quickly. This type of farm and ranch insurance protects you if your equipment suffers unexpected damage from weather, collision, fire, vandalism, etc.

It’s also a good idea to protect your investment with farm equipment breakdown coverage. This type of policy will pay for necessary repairs if a piece of equipment stops working or needs a new part.

Protect Your Livelihood With the Right Insurance

A comprehensive farm insurance policy can make the difference between financial ruin and staying afloat in turbulent times. And while wading through the world of insurance can feel overwhelming at times, it’s an essential part of protecting what you’ve worked so hard to build.

5 Excellent Reasons to Have Farm Insurance

You have spent countless hours and poured thousands of dollars setting up your farm, but you might still question whether you are doing enough to protect it against life’s unexpected surprises. From natural disasters to animal illnesses, farm insurance can help you protect your investment. 

You should consider obtaining a farm insurance policy if any of the following descriptors apply to you:

1. You Want to Protect Your Feed and Livestock

Farm insurance policies can be customized to cover a wide range of livestock, such as:

• Pigs

• Goats

• Emu

• Chickens

• Horses

• Cattle

You can obtain individual coverage on high-value animals (such as show horses), take out a blanket policy on your entire farm, or insure a specific herd. Naturally, the type and level of coverage you select will have a direct impact on premium costs, so you can scale back or ramp up your level of coverage to ensure that the policy fits your needs and your budget. 

2. You Want to Protect Your Investment 

Farm insurance doesn’t just cover your livestock: It can also ensure structures like barns or equipment such as tractors. In other words, you can take out a policy on just about any piece of equipment or asset related to your day-to-day farm work. 

3. You Are a Full-Time Farmer

As is the case with any full-time job, you and your loved ones depend on the revenue you gain from your farm work, but despite your best efforts, plenty of things — natural disasters, inclement weather, or even just a simple run of bad luck — can put that source of income in jeopardy.

Farm insurance can help you make your farm more resilient to the whims of Mother Nature. You can cover equipment damage, livestock losses, and more, and depending on your provider, you may even be able to add supplemental income coverage. 

4. You Are Starting a Hobby Farm

Aside from career farmers, hobby farmers serve to benefit from farm insurance as well. While you may not be fully dependent on your farm for income, you have undoubtedly poured time, money, and sweat into making it a reality.

When disaster strikes, a quality farm insurance policy can help you recoup your losses and start fresh. A comprehensive plan can also protect you from liability in the event a guest or passerby is injured by one of your animals. 

5. You Need Liability Protection in the Event of an Injury

Liability protection is a must, especially if you engage in any agritourism and therefore allow visitors onto your property. Farm insurance with comprehensive liability protection can help you cover the costs of medical bills and legal fees. When choosing a policy for this particular purpose, ensure that the one you select provides an adequate level of coverage based on the size of your farm and how many guests you typically receive. 

Finding the Perfect Policy 

There are plenty of great reasons to obtain a farm insurance policy for your property, and it is great for operations of all sizes and specialties, from calf-cow businesses to hobbyists and everyone in between. 

That said, not all farm insurance policies are created equal, so when searching for a plan for your farm, make sure to explore all add-on options, including liability and livestock protection, to properly obtain the exact coverage you need.

Does Agriculture Insurance Cover My Loss if Crop Prices Collapse?

Farmers are known for being extremely hard workers. They also face unique challenges and risks. Agriculture insurance can protect farms, livestock, and equipment from loss and damage. And yes: agriculture insurance can protect against losses due to price fluctuations. 

Read on to discover how agriculture insurance works and how it can protect your farm.

What Is Agriculture Insurance?

Agriculture insurance is designed to cover the needs of farms, ranches, wineries, and nurseries. It also serves other commercial enterprises that focus on raising livestock or producing crops. 

The exact coverage varies depending on your insurance policy. Commonly, agriculture insurance will cover the buildings, animals, or equipment that constitute your farm or ranch.

Types of Agriculture Insurance

Farm and ranch insurance can be further divided based on the assets covered. For instance, common forms of agriculture insurance include the following:

• Farm owner insurance (protects the physical property)

• Farm livestock insurance (protects animals)

• Equine insurance (covers the needs of horses)

• Farm equipment insurance (protects machinery and tools)

• Farm dwelling and structures (protects homes, silos, barns, etc.)

• Farm liability insurance (covers you in the event of an accident)

• Crop insurance (covers crops)

These policies are designed to adapt to the needs of ranch owners, growers, and livestock-dependent farmers. 

What Does Agriculture Insurance Cover?

Depending on the policy, you can use agriculture insurance to cover such events as:

• Damage to your home, barn, or other exterior structures

• Damage or theft to equipment

• Medical care of livestock

• Accidents that occur on your property 

Certain types of equipment coverage can also provide financing for rental vehicles should a major piece of equipment be damaged or stolen.   

Can Agriculture Insurance Cover Crops?

The Federal Crop Insurance Program (FCIP) has been in place since the 1930s. Today, it’s administered by the USDA, Risk Management Agency (RMA). This program offers farmers coverage if their crops are damaged or destroyed due to events and disasters such as:

• Excess moisture

• Damaging cold

• Hail

• High winds

• Disease

Crop insurance can also protect farmers against price fluctuation that would impact a farmer’s ability to profit from the year’s crop. The FCIP is not, though, the only type of crop insurance commercially available. Many other agriculture insurance providers offer revenue protection coverage that protects against major shifts in price.

How Revenue Protection Insurance Works

Most commonly, crop insurance offers revenue protection based on historic yields, sometimes called the Actual Production History (APH). This is simply the historic (mean) average of your crop yields.

The crop insurance provider will use the APH as well as futures market prices to determine the revenue coverage guarantee. As a result, farmers can remain confident that even if prices should plummet, their income is secure through an agriculture insurance policy.

The Protection You Need

Farmers play an essential role in the food supply chain in the United States. For that reason alone, they deserve all the protection they can get. And with the right agricultural insurance product, growers can find protection even if crop prices collapse.