What You Need To Know About Insuring Your Hobby Farm

Posted on: 3 April 2019

Farming activities are not limited to large corporations with vast acres of land. Many suburbanites are participating in farming through hobby farms. These small farms allow access to fresh foods without the cost and limitations of larger farm operations.

If you are considering a hobby farm for your property, you will need to make sure that you have adequate farm insurance to cover your endeavors.

Product Liability Insurance

Some hobby farmers produce enough fruits, vegetables, and meats to feed not only their family but some members of the public as well. You have probably seen hobby farmers with stands at your local farmers market.

If you want to profit from the sale of your farmed goods, you should consider a product liability insurance policy. This type of insurance will protect you against financial ruin if a consumer becomes ill after eating something that was produced on your hobby farm.

Hobby Farm Insurance

As the popularity of hobby farms continues to grow, insurance companies have started to offer specialized policies that target these operations.

A hobby farm is one that meets strict standards set forth by individual insurers. Some of these standards can include the use of a single location, no paid employees, and a limit on the value of the proceeds generated from farm sales.

Hobby farm insurance can offer you coverage for your farm outbuildings (like a barn or chicken coop), as well as provide insurance coverage for your home. Ask your insurance agent about the benefits of hobby farm insurance for your property.

Livestock and Crop Insurance

Another type of insurance that hobby farmers should consider is livestock or crop insurance.

Unlike large producers that focus mainly on producing a large quantity of agricultural goods, hobby farmers tend to focus on the quality of their crops and livestock. This means that the value of each individual animal or plant on a hobby farm can be greater than their corporate counterparts.

You may be eligible to take advantage of insurance programs subsidized by the United States Department of Agriculture to protect you against the financial impact of crop or livestock loss in the future.

Hobby farms have unique insurance needs. It's important that you work closely with your insurance agent to determine the types of coverage you will require to guarantee that your hobby farm has maximum protection. Consider a product liability policy, a specialized hobby farm policy, and a crop or livestock policy.