How Much Does Farm Insurance Cost?
April 27, 2023
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As a farmer, you manage a lot of “behind-the-scenes” costs to keep your operations viable and affordable. One aspect of farming is acquiring comprehensive agriculture or farm insurance, which should generally insure all equipment you may have, commercial vehicles, buildings and infrastructure, livestock, crops, your liability, and more.
Unfortunately, as it tends to be with insurance, pricing farm insurance is hardly “that simple.”
A lot goes into a farm, and even that varies from farm to farm. There are farms involved in the red meat and livestock industry, farms involved in the seed sector, the food processing industry, horticulture, poultry and eggs, agritourism, agritainment and so much more. Every different type of farm faces a different set of risks, and with that comes having different insurance needs and different insurance prices.
In this article, we’ll do a general breakdown of the cost of farm insurance, what can impact those costs, what it costs to insure different features of your farm, and how to save by working with Hitchings Insurance.
Is farm insurance cheaper than home insurance?
The answer to this question is it depends! There are many factors that go into determining appropriate coverages and the associated premiums with those coverages. The important part is if you have farm exposure you should have a specialized insurance program. We work with carriers who understand farming and do a great job taking care of farm operations with tailored products.
What is the average price of farm insurance?
We’ve taken a brief glance at the average price of farm insurance in the past, and the answer remains relatively the same: it is extremely difficult to pinpoint a single average cost, especially since farming operations can be small and simple as a 50 or 80-acre family-owned farm or as large as 10,000 acres with hundreds of employees and thousands of crops and animals.
If we were to group by size, here are the figures for “average” farm insurance costs:
- Farms that have less than 100 acres may pay between $2,000-$3,000/year for their insurance.
- Farms with anywhere between 100-500 acres may pay over $2,500/year for their insurance.
- Farms with anywhere between 500-1500 acres may pay over $3,500/year for their insurance.
- Farms with more than 1500 acres may pay well over $5,000/year for their insurance.
As mentioned previously, it is very difficult to pinpoint a single average cost, and even grouping by size may not give us an accurate perspective of what the average cost is to insure your farm specifically. Additionally, these averages don’t account for individual factors, like the limit of coverage on dwellings, farm building insurance, farm equipment coverage, how much farm liability you have, livestock/crops, and more.
Getting a quick quote can give you a more accurate view of what you might pay. It’s free to do and there is no obligation for you to buy.
Farm Liability Insurance Cost
Farm general liability insurance is just one component of a comprehensive farm insurance policy, but it’s easily one of the most important parts. Liability insurance covers the business (i.e., your farm) if it is legally responsible for any damages caused to others during daily business operations. It does not cover intentional actions or activities outside the scope of your business’ typical operations. But it can cover the cost of defense, such as hiring attorneys, trial preparation, and discovery. It can also offer coverage to compensate the insured against the cost of injuries they faced.
Farm liability insurance cost varies, depending on the amount of coverage you may have. Policies could have $100,000, $500,000, or upwards of $5,000,000, depending on the type of farm and how much legal liability coverage is needed. It can also vary if you choose to purchase any endorsements, such as pollution liability insurance or an umbrella liability policy to enhance your liability limits.
How are farm insurance rates determined?
Farm insurance rates are dependent on the kind of farm that you run, whether that’s a farm that specializes in the production of eggs, cattle beef, agritourism, agritainment or crops. It also is dependent on what kind of equipment it used, the type of infrastructure it has, or how many acres your farm has.
That’s why there’s so much variability between different policies. You want farm insurance to match your goals, and we get it. Hitchings Insurance specializes in ensuring that your farm insurance plan is best suited to what you need it for.
Below is a breakdown of the several different factors which contribute to pricing a farm insurance package:
- Your farm’s acreage. Larger operations may cost more to insure.
- If you have livestock, how many, and what kind. Livestock presents an additional risk, which may vary depending on the type/how many, and whether you board any non-owned animals.
- Sheds, barns, shops, and greenhouses. You will need to insure all the buildings on your farm to ensure each element is protected. The more you have, the more it may cost to insure. Some facilities may be more expensive to insure than others.
- Farm machinery. As technology evolves, so does our farm machinery. Some equipment pieces will be costlier to insure due to their replacement value.
- Tools and equipment. You, as a farmer, likely need a lot of equipment to get your work done. Additional tools and equipment needing insurance will add to your final cost.
- Additional liability risks, like if you offer any farm activities, tourism, boarding animals, offer breeding services, or several workers. Additional risks may call for an increased liability limit, which in turn will hike your rates.
- Farm vehicles and their value. Similar to commercial auto, adding farm vehicles to your policy will mean having to pay additional costs to keep them insured.
- Your specific operations. Certain farms are more expensive than others to insure due to the nature of their operations.
- Coverage limits. The higher the limits, the more your costs.
- Deductible amounts and insurance history. These will play a role in how much or how little you will pay for your farm insurance.
These factors, and many more, are all looked at and weighed carefully to judge the cost of your farm insurance. Again, to get more accurate pricing, request a free and no-obligation quote from Hitchings Insurance.
Saving on Farm Insurance with Hitchings Insurance Agency
Farming, all things considered, is a tough business that is not meant for the faint of heart. Farmers may face many risks while trying to build their business or uphold their family’s legacy, and not all of them are predictable. As such, it’s important to have the right farm insurance policy, that protects all your equipment, your infrastructure, animals and crops, your legal liability, your family and your personal assets.
Hitchings Insurance Agency’s team members know farming. Many of us have been around farming our entire lives, and during our 50+ years of business, we’ve served all kinds of farms – from your standard 80-acre family farms to your massive, 10,000+ acre commercial operations. We know exactly how to get you what you need for the most affordable price. Let’s get your family, farm, and employees protected the way they deserve, starting today. Click to request a quote or give us a call.
