Guide to Agricultural Insurance

Your farm is probably the single biggest asset you have and provides your livelihood and security for your family. Farm insurance can repair or replace your farm buildings, equipment, livestock and crops in the event of a disaster. Agricultural business insurance can also protect you and your family in the event of a liability lawsuit due to a consumer safety issue, a farm visitor or trespasser's injury on your land.

There are 3 primary factors in deciding which type of agriculture insurance you need, and the agricultural insurance company that can best provide it. Here’s what you need to consider:

1. The type of farm and type of agricultural business you own.

2. There are full or part-time employees.

3. The presence of farm outbuildings and equipment inventory on your property.

Action Steps
The best contacts and resources to help you get it done

Assess your current insurance situation

If you already have a homeowner's insurance policy, it will not cover any buildings except your home, unless you have a rider to that effect. It also will not cover your farm equipment, livestock or crops; and it will not provide liability protection outside a certain distance from your home. If you do have insurance for your farming operations, meet with your agent and discuss your policy, line by line, to determine that you have adequate coverage for your business.

I recommend: Fill out a standard form that agricultural insurance companies use to determine what you need from your policy. Use supplemental forms to add policy riders for specific farming activities.

Learn about government resources and crop insurance programs

Whether you grow soybeans or pigs, agriculture insurance companies offer federally subsidized insurance for farm products. A transportation issue or a random hailstorm can devastate an entire season's product, and even a dip in the market is a risk addressed by some insurance policies.

I recommend: The United States Department of Agriculture (USDA) Risk Management Agency offers tips and tools for producers to reduce their risks. Find the tools you need to determine how much protection you need for your livestock and crops, and how much it will cost.

Sort through your options and calculate premiums

The primary concern most producers have is the cost of farm insurance premiums. Any agricultural insurance company will gladly work with a producer to determine which products are appropriate and what premiums they'll carry.

I recommend: The USDA offers a tool to help you calculate your insurance premium. Farm Bureau Insurance is specifically an agriculture insurance company, with agents in most rural areas.

Tips & Tactics
Helpful advice for making the most of this Guide

• Agriculture insurance companies need special licensing to offer farm insurance, particularly federally funded crop and livestock insurance riders. Contact your local branch of the USDA Farm Service Agency or your state's agricultural extension service for more insurance information.

The official source of Agricultural Insurance is
the Agricultural Insurance page at Business.com