What is Farm Personal Property Insurance
Updated January 1, 1 . AmFam Team
Are you looking to protect your farm but not sure where to start? Adding farm personal property insurance could be the solution you’re looking for. You can customize your coverage to fit your unique farming situations.
Farm personal property insurance typically covers items used in your farming operations. These items usually fall into one of three categories: farm machinery or equipment, livestock and farm supplies. Let’s look at each of these categories in a little more detail to see how they come into play and where your property fits in.
Farm machinery and equipment. As you may assume, this coverage is for your essential farm equipment and machinery such as your tractors, combines, cotton pickers and other equipment that keep your farm running smoothly and efficiently. But it also offers coverage to items you might not initially consider — like your computers, other office equipment, tools and supplies. It can also cover your portable items like irrigation systems.
Livestock. Your livestock is important to your operation and requires extra attention and protection. If you lose livestock due to a covered event, this insurance helps with the costs of replacing this valuable aspect of your farm or ranch.
Feed, grain, tools, supplies. The farm products category covers a broad base of items including grain, silage, pesticides, fertilizers and more. You’ll want to discuss this thoroughly with your American Family Insurance agent (Opens in a new tab) to determine what products you want covered and if there are any special requirements, such as method of storage.
When Does Farm Personal Property Insurance Kick In?
The goal of farm personal property insurance is to give you added protection in the event of certain situations or events. Reducing risks is your primary line of defense against loss, but sometimes the events are out of your control. With farm personal property coverage, you are prepared for those unexpected events.
When Mother Nature comes calling. Weather plays a big role in the day-to-day operations of your farm. Sometimes it’s a blessing, sometimes Mother Nature has other things in mind. This coverage gives you added protection if you suffer losses from lightning, windstorms and hail. It also provides coverage if there is a sinkhole collapse or volcanic action.
Fire, smoke and explosions. Fire poses an obvious threat to your farm and you want to do all you can to protect your operation. While you’re thinking of fire, don’t let the possibility of smoke damage go overlooked. This coverage gives you protection in the event of both or either situation. It also protects you if an explosion damages your property.
Vehicles, aircraft and collisions. Vehicles can cause damage to your property, whether they’re your farm vehicles or passenger vehicles that belong to others. With this coverage you get help recovering any losses if a car of a plane hits your property. You’re also covered if your farming equipment causes damage, like your combine hits a post.
Criminal acts of others. If your farm experiences loss or damage from theft, vandalism, riot or civil commotion, this insurance is your go-to for coverage of your farm personal property.
Loss to livestock. Your livestock is important to your operation, and protection from loss is a smart way to add security to your investment. This coverage includes earthquake loss, theft, vandalism, lightning, fire and electrocution.
Blanket or Scheduled Coverage for Your Personal Property
If you’re considering farm personal property insurance, there are two different types of coverage, blanket or scheduled. You can select the one that you feel fits your personal property needs best.
Blanket coverage. With this option, you select a blanket coverage limit, you can then fluctuate your farm personal property coverage, across your operation, up to that limit. This gives you the flexibility to protect what matters most to you and your farm. Blanket coverage can provide protection on one property category or on several types of property grouped together under one blanket limit.
Scheduled coverage. This coverage lets you pick individual items that you want to insure and allows you to assign a specific amount of insurance to each item. This is a great way to customize your coverage based on your specific needs, usage and budget. It also gives you adequate limits for higher valued items. This is ideal for new tractors, combines and other large pieces of equipment.
One thing to note, if you have a lien on any property, your lender may require scheduled coverage for that particular item. In this situation, you may want to discuss special coverage, such as replacement cost, with your American Family Insurance agent (Opens in a new tab) so you’re confident you’re getting the right protection for your situation.
Additional Coverages for Farm Personal Property
If you’d like to take customizing your farm personal property coverage a step further, there are extra protection options that give you added confidence when it comes to the following property and situations.
GPS units. Your GPS guidance systems are an essential part of your business. And with this added endorsement you get more coverage for this vital technology.
Peak season endorsement (including livestock). This endorsement can be used for livestock, grain, feed, hay, silage, fertilizer and more. It gives you coverage for peak values of inventory for a specified period of time.
Replacement cost of irrigation systems. Keeping your irrigation system in working order is critical for producing successful crops. With this endorsement, depreciation of your irrigation system is not applied and we’ll work to replace it to keep your operation running smoothly.
Replacement cost for machinery and equipment. You rely on your machinery and equipment on a daily basis and a breakdown could cause significant problems. This endorsement is designed for machinery and equipment that is 10 years of age or newer. It should be insured for full replacement cost value as co-insurance does apply.
Farm income. This endorsement is designed to pay for continuing expenses if there is a covered loss. One example would be a fire to your hog confinement. You discover that it will take four months for the building to be repaired and you to begin operations again. During the four months, you still need to pay your bills, wages, loans, etc. With the farm income endorsement you can move ahead, without those bills weighing on your mind.
Suffocation of livestock – property owned and non-owned. This covers any livestock you are responsible for, whether you own it or not.
Care, custody and control property. This endorsement gives you livestock coverage for animals you care for. For example, this coverage is used if you rent your building to a neighbor to board their horses and you agree to care for the animals. With this protection, your neighbor’s animals have insurance protection in the event of a covered incident. Connect with your agent (Opens in a new tab) to learn more about this endorsement and to evaluate your needs based on your rental situation.
Milk contamination. If contamination happens to the milk of others, your liability insurance will cover it. But if the milk you produce is contaminated by a covered loss you will be protected by this endorsement. You have the option of selecting either a 10% or a 20% deductible option.
Equipment rented or borrowed from others. If you are renting or borrowing equipment, this endorsement protects you from having to cover any damage that occurs. There are some choices on how much coverage you can get, so it’s a great idea to talk over your concerns with an agent (Opens in a new tab) and evaluate the options available.
Re-bagging and re-covering expenses. If the covering that protects your feed is damaged from a covered peril such as fire, wind, hail, lightning, machinery contact, etc. then this endorsement provides for the expenses associated with re-bagging or re-covering the contents.
Farm machinery and equipment — open perils. Add additional peril coverage to your machinery, equipment and for things like rock ingestion, rodent damage to wiring and more with this endorsement.
Ingestion of foreign objects for farm machinery and equipment coverage. Ingestion of a foreign object into your machinery or equipment can cause a lot of damage. This coverage protects you in that situation. You can add this endorsement to either a schedule or blanket farm personal property insurance plan to give you additional coverage from $5,000 to $100,000.
Property in transit. Moving property adds some risks you don’t normally face, so it makes sense to protect your farm personal property if you’re going to be moving it from place to place.
Added animal perils. This endorsement is used to help you recover from a loss of livestock caused by accidental shooting, drowning, attack by dogs or wild animals or collapse of a building.
Winter perils. If your farm is blanketed in a layer of snow every winter, then you may want to consider adding the winter perils endorsement to your policy. This optional endorsement provides coverage for loss resulting from death caused or made necessary by freezing or smothering in a snowstorm or ice storm or from falling through the ice.
If you want to be proactive about your farm or ranch, connect with your American Family Insurance agent (Opens in a new tab), they’ll help you make sure you select the right coverage for your property. You’ve worked hard to create an operation that you’re proud of and it means everything to you. Farm personal property insurance is just another way to protect what matters most to you.
Related Articles
- Hobby Farm Insurance
A hobby farm is an exciting lifestyle choice, not a business. But that doesn’t mean that protecting it is any less important. You’ve put a lot into your livestock and crops, and probably made some equipment investments too. Now it’s time to give your farm the protection it deserves with hobby or small farm insurance.
Even people who live in the city or suburbs are discovering hobby farming in varying degrees and may benefit from some added coverage. In addition to protecting your property and farm, you have to be cognizant of your neighbors and their safety, which can be even more important in an urban setting.
While some hobby pursuits may fall under your homeowners insurance policy, as your little farm grows and if it earns money, hobby farm insurance or even small farm insurance will give you extra protection. If you begin selling produce or products made from your farm, product liability insurance should be a consideration. And don’t forget to look into coverage for any equipment you purchase.
For anyone just starting a hobby farm, making a list of short and long-term goals helps create a foundation of success. Do you want to focus on animals, crops or both? Starting small and building toward that long-term dream gives you room to grow and space to adjust your plan as you learn along the way. Sharing that list with your insurance agent will help you determine how much and what type of hobby farm insurance you need and what milestones may signal that it’s time for a policy update.
A routine insurance check-up is a great way to stay on top of your coverage and make sure you and those who may be effected by your farm are protected. Contact your American Family Insurance agent today to re-examine your coverage.
- Create a Farm Equipment Inventory
Carefully sourcing items for purchase, reviewing bids, getting financing and insuring your farm’s belongings is a critical part of managing your farm or ranch. And since it’s taken so much to get your operation where it is today, it makes good business sense to build an inventory of your farm’s equipment, implements and assets.
Take a look at these tips and best practices for creating an accurate inventory for continued success on your farm or ranch.
The Price of Your Farm Equipment List
Gathering your equipment information into one place can be a process — but the payoff is worth it. Not only will you have access to important details about each piece of equipment, you’ll also have a running list of makes and model numbers in the event that parts or service is required. And you’ll have everything you need when it’s time to get a fair market value price for your equipment.
And having an updated inventory on file can really pay off if you need to file an insurance claim, because you’ll have all the information right there to get the claim started. Take a look at the details on our farm and ranch coverage to be sure you’ve got the right insurance that fits your farm’s business needs.
Catalog Your Farm Implements and Farm Tools First
It’s time to get down to business and start pulling files. Begin by building a list of implements and equipment that are essential to your farm’s day to day operations. Here are some of the documents you’ll need.
Start with the high-value items and assets on your farm like the ones listed below:
- Tractors
- Combines
- Farm irrigation systems
- Hay balers, backhoes, and wagons
- Planters
- Cultivators and disks
- Herbicide and crop sprayers, as well as fertilizer and manure spreaders
- Milking machines
- Irrigation equipment
- Internal combustion and electric motors
- Water pumps and air compressors
- Motorized post-hole diggers
- Snow throwers and lawn mowers
- Generators and emergency backup equipment
Once you have the records out for the above items, dig in and locate the following:
- Original purchase orders
- Purchase receipts
- Tax receipts
- Liens or collateral documents that used the above items in order to get financing
- State and county registration records
- Insurance documents
- Financing documents
- Maintenance records
Leverage Farm Management Software
Powerful farm management software is available to quickly turn your farm equipment inventory and implement details into a web-enabled, mobile-friendly database that you can access and update from anywhere. All you'll need is a cell signal and the app downloaded to your mobile device.
More importantly, farm management software can make your farm easier to run and more profitable too. Many systems are able to manage your farm’s entire business, from employee payroll to tracking crop and livestock details, to accounts payable and receivable. They’re worth considering.
The Financial Benefits of a Farm Equipment Checklist
With your inventory complete, you’ll be able to rapidly gain insights into which equipment is approaching the end of its usable life, and which items are in need of replacement. With non-cash expenses like inventory depreciation tracked closely, you can make informed decisions on when to sell or purchase large implements and equipment.
Take Inventory of Your Farm Insurance
An accurate picture of your farm’s inventory can offer key insights from your farm's financial health to the fair market value of your assets like livestock and equipment. Another benefit of creating a farm inventory is that it also helps assess the value of the farm as a whole, when the time comes to evaluate your estate. Understanding the importance of a farm succession plan will help you to carry your family’s vision and future business intents to the next generation.
After you’ve completed your farm equipment inventory, get a copy of it to your American Family Insurance agent. With this information, you’ll be able to tune your insurance to best reflect today’s needs so that — no matter what tomorrow brings — you and your family’s investments will be protected.
- Does Farm Insurance Cover Snow Load Building Collapse?
After you’ve brought in the harvest and prepared your operation for its annual winter hibernation, you might think that the risks to your farm are taking the winter off. But in truth, mother nature can do a lot of damage to your property in winter. Wind and snow loads can wreak havoc on weak or dated structures. And without the right farm insurance and additional coverages, your farm’s finances may be out in the cold if the unexpected should happen.
Special farm endorsements — otherwise known as additional coverages — can help cover building collapse costs that are the result from winter precipitation on your outbuilding’s roofs. Today, we’ll explore the nuances of our weight of ice, snow or sleet and winter perils coverage to help you protect everything you work so hard for all year long.
- Enhance Your Farm's Digital Presence
As a farmer, you know the goals of your farming business better than anyone. After all, it’s what you do day in and day out. What’s equally important as a business owner is understanding the audience you’re marketing to and how to reach them. That’s why creating an online presence for your farm is so important — it’ll help you connect with your customers and build an authentic brand that people are attracted to.
An active online presence, when used correctly, is an effective tool that offers the opportunity to reach a broad range of customers and implement your business strategy. Let’s take a look at some of the ways you can begin building your farm’s presence on the web and, ultimately, help you meet your business goals.
The Importance of Understanding the Platform and Your Audience
Before introducing your farm to the World Wide Web, you’ll want to keep these two things front of mind:
What content are you putting on each platform?
From your website to your e-newsletter, your customers consume and engage with every platform in different ways. So, when you start building your online presence, you’ll want to have an understanding of each platform’s purpose. That way, when your customer interacts with your business, they’re getting the information they expect.
For instance, someone visiting your farm’s website is going to be looking for much different information than if they were on your Twitter feed. Or if a customer follows your Instagram account, they aren’t expecting the same stories as they read in your farm’s e-newsletter.
You can build a better experience for your customers by asking yourself what mindset your reader is in when they head to each platform you create.
Who is your audience?
Understanding your customer is essential to the success of your digital presence. Before delivering a message effectively, you need to know who the message is going to and why. For starters, consider the kind of farm you run. Are you a commercial farm that sells your product to big businesses for distribution, or is your customer local businesses and families? The content and its tone depends on who you’re trying to reach. Who are they, what are they looking for and what’s the most authentic way you can relate to them to get them what they want? Understand their motivation by putting yourself in their shoes.
Building a Website for Your Farm
Now that you have a better idea of some digital basics, let’s put that knowledge into practice — starting with your website. The internet is a powerful tool to market the product(s) your farm produces, and creating a website is a key way to harness its potential. Follow these guidelines for website best practices:
Set goals. Spontaneity has its time and place, but building a website to market your brand isn’t the situation to jump in without a plan. It’s important to set realistic, achievable goals for round one of your website. Keep in mind, your site is a work in progress and can be improved upon in many iterations. Consider what you want your website to achieve. Are you selling products? Do you offer a CSA? Do you want to educate people on agriculture? Maybe you’ll create a gallery to show images of the fun you have on your farm. Take the time to sit down and list out a few goals for round one. With your plan in place, it’ll make the next steps that much easier.
Creating the website. You’ll need to decide if you want to hire someone to create your website or if you plan on crafting one yourself. Many sites exist that make it super easy to create and maintain your own website — and most of them are even free to use! If you choose to have someone develop a website for you, make sure it implements a content management system so you can update the site yourself. This way, you can easily keep things relevant without always having to go back to the designer (and pay them) to make changes.
Provide a clear description of who you are. If someone stumbled upon your website, would they be able to identify who you are and the purpose of your farming business within a matter of seconds? That’s your goal — create a homepage that’ll attract and retain your customer’s attention so they’ll stay on your page. Make sure the name of your business stands out and a summary of your products and services is included.
Clear navigation. In order to guide your customers to discover all the great things about your business, you’ll want a navigation menu with clear links that lead to your pages. A dropdown menu offers an easy way for your visitor to see all that you have to offer, no matter which page they’re on. You’ll ultimately decide which pages you want on your page, but home, about us, newsletter, calendar, contact us, links to your social media pages and other important services you offer are common pages to include on your website. Remember, your pages will align with the goals you set at the beginning.
How to Create a Farm E-Newsletter
No matter what type of farming you do, an e-newsletter is a simple and effective way to promote your farm. An e-newsletter is a periodic “report” with information and news about your farm and, in this case, is distributed to your subscribers via email. This form of marketing can be very effective because it’s targeted to people who have already taken interest in what you’re doing.
So what should you know about creating an e-newsletter? Start with these three tips:
Newsletter content. A good rule of thumb to follow is to include content that’s 90% educational and 10% promotional. Chances are the person who subscribed to your e-newsletter wants to get to know your business better and continue to stay informed — not be pushed to buy something. Providing educational, relevant information builds trust between your reader and your business. Here are some ideas for content you might include:
- Whether you sell meat or vegetables, recipes are a fun way to mix your product with something useful to the consumer. It may even encourage a customer to buy your product.
- Life on the farm isn’t something everyone gets to experience. Include a fun story about how your farm runs or an anecdote about your animals. This way your reader can vicariously experience farm life.
- Is your farm open to the public? Include visiting hours, what they can expect to experience and any upcoming special events.
- If you offer volunteer opportunities, include how to volunteer and/or a testimony from a previous volunteer.
- Will you be at a farmer’s market or farming expo? Be sure to list anywhere you plan on appearing as vendors.
- Reward your subscribers with a discount or coupon every now and then to show you appreciate their business.
- Is there something unique about your farm? Let it be known!
There’s no end to the content you can include in your newsletter, but most importantly, make sure it’s relevant and have an understanding what your reader is looking for.
Newsletter design. A newsletter can be sent by mail, email or included on your website. Our suggestion is to send your subscribers an email as well as include a web page for your newsletters on your website. That way non-subscribers can view the newsletter and hopefully become subscribers! Here are a few things to keep in mind for the layout of your newsletter:
- Create a header at the top of the page that includes the title of your newsletter, your company name and logo.
- Use subheadings to organize and break up the pieces of content. A subhead should be smaller than your main heading and bigger than the text you use for your content blocks.
- Choose a color scheme. If you have a brand logo, defer to those colors.
- The legibility of your newsletter is very important, so stick to one or two fonts, since too many fonts can give a disorganized look.
- Have a balance of images and text. An image grabs a reader’s attention and offers a visually appealing element to your newsletter. It can be used to break up the page so as to not overwhelm the reader with too much content.
- Don’t create a five-page newsletter. Keep it to a page or two. The newsletter is designed to provide quick, digestible information that grabs your reader’s attention.
Newsletter frequency. How often should you send your newsletter? Most people choose to send a weekly, monthly or quarterly newsletter. It all comes down to your own personal goals and what your business offers. If you have a lot of events happening on your farm or are very customer-focused, sending a weekly newsletter is a good idea. If you don’t think you’ll have much time to put into a weekly newsletter, go for the quarterly and make sure to spend time filling it with all the great things that have gone over the last three months. A monthly newsletter is a good, doable balance for busy farmers who need to keep their customers updated but don’t have a lot of time.
Just remember — your newsletter is meant to attract your target audience and give them a reason to stick with you. Do what’s realistic for your business and have fun with it!
Social Media and Your Farm
Facebook, Twitter, YouTube — just a few social media platforms you can use to easily promote your farm. And they are pretty simple to set up and maintain! Our advice is to focus on building out your presence on one platform and slowly work your way into creating more accounts once you get the hang of marketing through social media. Here’s a closer look at some great ways you can use social media on your farm.
A thought-out, well-run digital presence can benefit your farm in many ways. With the right goals and strategy in place, you can give your farm a digital edge. Your next steps? Go dig around the Internet and do some research. What kinds of farming websites exist? What kind of information do other farms include in their e-newsletters? Start following some successful farm’s on social media. Take a look at what already exists on the web to gain ideas on what might work or not work for your own strategy.
Remember — it’s all about knowing your audience and what they’re looking for. At the end of the day, it’s about making your customer happy.
