New To Farming? 3 Farm Insurance Options You Need To Know

2 August 2017
 Categories: Business, Blog


Whether your farm is large or small, insurance is going to be an important aspect of your farming budget. A crucial mistake many farmers make is not having enough insurance. Although your homeowners insurance can cover some aspect of your farm, it will not completely replace the hundreds or thousands of dollars you have invested should a disaster occur. The following are some things to consider if your farm is currently underinsured:

Hobby Farm Policies

If you are turning a small profit with your farm, a hobby farm policy may be all you need. This is ideal if you are selling your goods at a farmers market or to a very small local store. In order to get a policy for a hobby farm, you must meet certain requirements.

First, your farm will be limited to your single location. This means if you operate out of more than one property, you will need a different policy. You may also not have any paid labor working on your farm. The farm must be limited in size according to the limits of your insurer. Most hobby farms will meet this limit, as it is typically capped at several hundred acres, depending on the insurer.

Full-Time Farming

If farming is your primary occupation, you will need a farm owner's policy. This is different than a hobby farm policy as it covers a great deal more. It will include coverage for your property, liability, loss of income, and the like.

This type of policy is designed to protect you financially should something happen to your farm. The thing to keep in mind about a full-time farmer's policy is that it is not one single policy that covers everything. You can choose which type of coverage you need based on the type of farm you operate. For instance, if you only farm corn or soybeans, you do not necessarily need a policy that includes coverage for livestock. You can work with your insurer to design a policy that will protect your livelihood.

Livestock Coverage

If you have livestock, you will need special insurance coverage, depending on the type of animal on your farm. You have some options when it comes to livestock insurance. Scheduled coverage is best if you have a special type of livestock that is higher in value. You can insure it up to a specific amount of money.

You also have the option to have unscheduled coverage on your livestock. This is blanket coverage that covers all of your farm property, including your animals. Should something happen to your farm, you will receive a lump sum that is determined by the amount you chose to insure. For more information, visit a website like