If you’ve been saying to yourself, “I want to own a farm,” then you’re in good company. In 2020, there were over 2 million farms in the United States.
Owning a farm is a dream for many, and you’re not alone in wanting to make that dream a reality.
But in this day and age, wondering how to own a farm also comes with many questions, especially insurance questions. You need to know that you’re protected.
The great news is owning a farm is easy when you have the right insurance plan. So keep reading this guide to find out everything you need to know about farmer’s insurance.
Owning a Farm
There is a lot to consider when you’re looking at owning your farm. Whether it’s owning a small farm or owning a chicken farm, you have research to do and things to consider.
So, start small. Consider your vision and values. Do you want a small hobby farm, or are you planning to farm as your full-time occupation? A farm is a business, so you need a strategy and a business plan.
Study the local market, find out what products are selling, and set realistic goals. Identifying the goals and objectives of your farm early on will help you settle on the right kind of farmer’s insurance to protect your assets.
What is Farmers Insurance
Whether you’re farming as a hobby or for your primary occupation, you still need to make sure you’re protected.
Your standard homeowner’s insurance policy may cover some farming activities but usually excludes farming equipment and activities. So it’s essential to get specific insurance for farmers to protect your dreams.
First, you need to know how insurance companies define the word “farm” before doing anything else. A farm is a piece of land you use for agricultural purposes with expectations of a profit.
Next, it’s essential to be familiar with the specific types of farm insurance and precisely what they cover.
If you have a fully operational farm, then you’re required to have full farm liability coverage. You need to have enough liability coverage to cover an injury or property damage on your farm that might occur.
You’ll also need to look at farm equipment insurance, especially if you have large and expensive equipment necessary for your daily operations.
You also have to consider farm livestock insurance even if you don’t have animals specifically to produce income. Livestock insurance covers the animals you use for farm work, such as horses.
And don’t forget farm automobile insurance; if you use a truck only for farming purposes, it’s classified as a farm truck allowing for more benefits and a lower insurance rate.
The overall cost for farm insurance varies and depends on the size of your farm, the number of buildings, equipment, and any other special requirements you may have.
Owning a Farm
Remember, owning a farm doesn’t have to be as complicated as you think. Starting small, forming a plan, and getting the right insurance will help set you up for success.
If you enjoyed this guide, check out our blog to see other excellent insurance, business, and health tips you can learn!
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