How Much Does Insurance Cost for My Farm?

One of the most common questions we receive from farm owners is: How much will farm insurance cost? This is a very complex question but I will do my best to answer.

When you purchase your insurance coverage it is much like the purchase of a tractor or even a vehicle. When purchasing a tractor, there are many variables to consider as well as many different manufacturers from which to choose. Each manufacturer offers several sizes of tractor rated by many methods such as Horsepower, Weight, Size and Lift Capacities. The key to buying the right size tractor is to know what you want to accomplish with your machine. Will it be used primarily for planting? Or will you be using a four wheel drive machine to pull or push a tool or a machine over your land? How do you know what size is right for you? First, let’s talk about how “big” a tractor you need. With so many variables to consider price ranges can vary drastically. Just as a standard 2WD Tractor can start at around 40k with just a basic package, it can quickly cost well over 100k once a shopper adds 4WD. Considering that the average Farmer will sell or trade-in their equipment within the first five years of purchase, why do so many elect to get so many upgrades? Remember that at some point, everything you buy will have to be sold. Buying a “name brand” tractor will ensure that in the future you will have no trouble finding a new home for your machine

“The bitterness of poor quality lasts long after the sweetness of a cheap price.”

Most people understand the importance of getting what they want the first time so as to not have any regrets down the road. These same principles typically apply to most Farm Insurance shoppers. Understanding that they may never need to use their insurance they feel comfortable knowing that the correct policy is in place to cover their needs at the time of loss.  As well as the fact that picking the right options the first time is critical to ensure that you have adequate coverage at the time of a loss. Unfortunately, some people only focus on the initial price of the insurance policy with the only goal of finding the "cheapest" company, therefore sacrificing coverage, quality, loss control, and service, which inevitably leads to regret, especially considering that unlike a tractor, an insurance policy cannot be traded in when one is dissatisfied and disenchanted with a claim settlement.

I hope that you understand the tractor analogy, I will list some of the most common "add-ons" or “options” found in the purchase of an insurance policy to protect your farm property and liability:

  • Chemical Drift Coverage
  • Pollution Liability
  • Zero Deductible for Cab Glass
  • Rental Reimbursement of Farm Machinery
  • Grain Coverage
  • Employers Liability
  • Employment Practices Liability
  • Scheduled Personal Property
  • Farm Identity Theft
  • Borrowed Farm Equipment
  • Disruption of Farming Operations
  • Livestock Coverage
  • Non-Farm Activities Coverage
  • Cargo
  • Extended Pollutant Cleanup & Removal
  • Environmental Damage
  • Loss of Farm Income
  • Custom Farming
  • Incidental Hunting Operations
  • Umbrella Liability

When a farm owner receives an insurance proposal from our agency we will thoroughly examine your operation and identify your potential loss exposures for loss and provide coverage options to benefit you in the event of a claim.

When an inquiry is made as to how much Farm Insurances cost the extent of agent interaction is also a key factor. What I mean by this is that as an agency, we have several insurance products that we offer our customers. Unlike most Insurance Agencies, we specialize in Agriculture and provide Property & Casualty, Liability, Life, Health and Crop insurance through the leading insurance carriers in the industry.  In addition, we are a Farm Certified Agency. This professional designation helps farmers recognize an insurance agency that has made a commitment to protecting agriculture. The rigorous training program means farmers can depend on a Farm Certified agent to conduct farm risk assessments that can help them reduce expenses, educate them about potential exposures, and provide professional, highly personalized service. To receive a free review of your farm insurance by a Farm Certified agent, call 662-843-3801 today!

Posted on July 7, 2015 and filed under Agribusiness.