Farmers have a number of obligations to fulfill, should they launch a farm that’s both eco-friendly and profitable. Among these are the more financial and technical aspects that often go overlooked.

For instance, an insurance policy is something you should never cut corners on, as it is necessary to keep your business secure should something unfortunate come to pass. Oftentimes however, farmers choose to skip insurance entirely, deeming it a needless expense. This is not a wise choice.

Home Protection

For most farm owners, the farm is both their home and a place of business. When you neglect to insure your farm, you neglect to insure your home as well. The first insurance policy to purchase is therefore insurance that covers your home or dwelling. This will cover your home in the case of a fire, storm, or any other natural disaster that might occur. It is a monthly expense, but one you must take on in order to stay safe.

Employee Liability

On a farm, your employees are your most important asset as a business owner. You must protect them as well, in the event that something should happen to them. There are sadly many ways to get hurt on a farm, and it’s better to be safe than sorry.

Employee liability will play to major roles, covering your employees in the event of injury, or should they need to take time off of work. Secondly, it will protect you from being sued in such cases. .

Farm Equipment

Aside from the land itself, a farmer’s most important investment is the purchase of equipment. Equipment is usually only purchased once and used for years to come, which means farmers should take ample time when choosing and caring for their machinery.

You’ll want to have an insurance policy for your equipment. This will cover any damages that might occur while your equipment is being used, or damages brought on simply from everyday use.

Outbuilding Coverage

Dwelling insurance covers only damages that might arise with your home. Farms have many other buildings to worry about aside from the home itself, so you’ll want to keep these insured as well. You must protect your entire property, not just the place you live.

The barn is the most important of these outbuildings, where most of your assets will be stored. You should also cover your workshop if you have one, along with any other auxiliary buildings.

Asset Insurance

Many of the items we’ve mentioned could be seen as business assets–however, when it comes to the term “asset insurance”, this usually means that you’re simply covering livestock, as this is the biggest asset for many farmers.

This is obviously a responsible way to handle your livestock, as many things could happen. Your livestock could be hurt during transport, or simply fall ill, resulting in huge expenses for your farm.

Personal Insurance

Personal insurance is a policy meant to cover the farm owner personally in the case of injury. As farms are very much reliant on the owner to thrive, personal insurance helps make sure the business is safe, should something happen to their main asset in terms of employees.

This insurance depends on your age, overall health and what kind of problems you may encounter in the long term. The younger and fitter you are, the less you’ll pay in terms of monthly fees.


Farmers must find ways to secure their assets: including the farm, its land, equipment, and the owners themselves. This is done primarily by ensuring you have proper insurance policies in place.



Date:Aug 20, 2019

Category:Local Agriculture, References

Tags:agriculture, investment

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