If you’re a farmer, no matter how small your operation, you need to get farm insurance to protect your livelihood. Since no two farms are alike, your policy needs to be custom tailored to your property and circumstances. Here are a few important factors to consider when crafting your policy.

3 Important Facts About Farm Insurance

1. It’s Not the Same as Home or Business Insurance

While there is some overlap between homeowners and farm insurance, they are not interchangeable. For example, your home insurance will not cover certain outhouses (barns, granaries, etc.) or farming equipment even if they are on your property. Likewise, a business insurance policy is not specific enough to cover some risks, such as crop damage or machinery breakdowns.

2. The Coverage You Need Depends on Profit

The policy you need depends on whether your property qualifies as a hobby or a for-profit farm. Basically, is this what you do as your full-time job, or is it a small side venture? If you’re not sure, the main criteria for a hobby farm include:

• No employees (beyond yourself and your family)
• Smaller than 500 acres
• A maximum of $10,000 in annual earnings

If your operation is any bigger than that, you’ll need a farm owner’s policy that includes liability insurance and other types of commercial coverage.

3. Your Livestock & Crops Needs Special Coverage

Even if you already have farm insurance, you still need to add on special coverage that specifically applies to your livestock and crops. You can choose either blanket or individual coverage. Blanket coverage will insure all of your livestock, crops, farm equipment, and other structures while individual coverage covers a specific animal only. You need only individual coverage if you have a higher value animal or crop like cows or rice.

If you need a farm insurance policy, call Kirk Insurance Agency in Spearman, TX, at (806) 659-2794 or visit their website to schedule your consultation. Their friendly team of experts will work with you to find the policy that meets all your needs without breaking your budget. For nearly 20 years, they have been providing a full suite of policies and an unmatched level of personalized service to Hansford County.