If you have property being used as a farm or ranch, you need certain insurance to cover the risks you face. But what are they?
The insurable risks, and the insurance coverages, that are relevant to your farm may depend on how you’re using the property. No two farms are just alike, but let’s take a look at some common scenarios.
Hobby Farms
If you have a farm that is used primarily for enjoyment and not as a profit source, you likely have a “hobby” farm, something you think of as an extension of your home. However, you have still put time and money into this effort, and it needs to be protected. You have property, equipment, and liability that needs specific coverage. It is unlikely that your home insurance policy properly covers your hobby farm, but an insurance agent can find you the right coverage.
Small Farm or Ranch
Maybe your hobby farm has expanded into a larger operation. For instance, if you have a corn maze, pumpkin patch, or maybe even goat yoga! If you welcome visitors to your farm or sell produce or products from your farm, hobby farm coverage may not be a fit either. Things like agritourism and agriculture liability may be in play now. Small Farm Insurance may be the answer here, and the parameters of your use will determine the coverages you need.
Agribusiness
At some level, your farm or ranch may turn into a full-time business. Or maybe it already is. Growing crops, raising livestock, and other commercial production from your land requires much broader protection. Your property, structures, equipment, livestock, and the crops themselves may all need to be covered. There are typically coverages available for all of this, but there are key differences in the way these policies work. For example, federal crop insurance from the government has a very different process than livestock risk protection.
So, what insurance do you need for your farm or ranch? We have a team that has worked with hundreds of farmers and ranchers, and we’d love to help you review what you have and discuss what you need.