Understanding the Importance of Farm and Ranch Insurance: Protecting Your Farm and Livelihood

Farm and ranch insurance

Looking down at your plate, colorful with bright veggies and rich with quality meats, does the question ever cross your mind-

Where exactly does this all come from?

Most likely, it’s from a family farm or a smallholder farm. This probability comes from the simple fact that 80% of the world’s food is produced by family farms

With production volume so large, with so many mouths to feed around the world, and so many livelihoods connected to this commitment to feed the world we live in, it can go without saying how important farm and ranch insurance is. 

What is a Family Farm?

The vast majority of farms and ranches in the United States are family owned and operated. The USDA classifies family farms as

“any farm organized as a sole proprietorship, partnership, or family corporation. Family farms exclude farms organized as nonfamily corporations or cooperatives, as well as farms with hired managers”.

These are the families that feed families. And, just like families give to each other, they also protect each other.

But this should extend back to themselves too– and to all they give to the world around them. 

This is why the important 2,002,700 farms dotting the United States staffed by 2% of the population that work in the industry deserve (and need!) the protection provided by farm and ranch insurance.

What is Farm and Ranch Insurance?

Farm and Ranch Insurance is an important type of insurance coverage for farmers and ranchers in Oregon. Of the over 2 million farms across the United States, 37,200 of those farms exist here in Oregon.

This type of insurance is designed to protect individuals and businesses that own and operate farms and ranches from a variety of risks and liabilities. In this article, we’ll explore some of the key aspects of farm and ranch insurance in Oregon, including who needs it, what it covers, and how to find the right policy for your needs.

Risks Faced by Farmers and Ranchers in Oregon 

Farming and ranching are inherently risky businesses, with a variety of potential hazards that can lead to financial losses and legal liabilities. 

To put it one way, farming is considered one of the most dangerous jobs in the U.S. 

But that doesn’t always take into account the risks outside of physical or bodily harm– the production risks, the price or market risks, the financial risks, or the institutional risks. These risks can look a little different from region to region or sector to sector of the farm and ranch industries. Though, the risks are there for everyone engaging in this fundamentally important industry

In thinking close to home, some of the most common risks faced by farmers and ranchers in Oregon include:

  • – Property Damage: Farms and ranches are filled with valuable equipment, structures, and crops that are vulnerable to damage from a wide variety of sources, including severe weather, fires, and theft.
  • – Liability Claims: Farmers and ranchers can be held liable for a variety of injuries and damages that occur on their property, such as injuries to visitors, damage to neighboring property, and accidents involving livestock.
  • – Crop Failures: Oregon’s farming industry is highly dependent on favorable weather conditions, and crops can be vulnerable to damage from pests, diseases, and natural disasters. 

To put the importance of farm and ranch insurance in perspective simply from this stance, it is projected that the probability of crop failures will rise 4.5 times by 2030 and will be 25 times more likely by 2050.

  • Livestock Losses: Ranchers may experience losses of livestock due to accidents, illness, or natural disasters such as wildfires.

Farm and ranch insurance

Who Needs Farm and Ranch Insurance in Oregon?

Farm and Ranch Insurance is typically required for anyone who owns or operates a farm or ranch in Oregon. This includes individuals, families, and businesses that engage in agriculture, including crop production, livestock raising, and dairy farming.

Even small-scale farmers and hobby farmers will benefit from farm and ranch insurance, as they may still face many of the same risks and liabilities as larger operations.

What Does Farm and Ranch Insurance Cover?

Farm and Ranch Insurance policies can vary widely depending on the specific needs and risks of the operation. However, most policies will provide coverage for a variety of common risks, including:

  • – Property Damage: Farm and ranch insurance policies typically provide coverage for damage to property, such as buildings, equipment, and crops. This can include coverage for damage caused by natural disasters, fires, and other unforeseen events.
  • – Liability Claims: Liability coverage is a critical component of farm and ranch insurance, as farmers and ranchers may be held liable for a wide variety of injuries and damages that occur on their property. Liability coverage can help protect against claims related to injuries to visitors, accidents involving farm machinery, and damage to neighboring property.

Paired with Property Damage, Liability claims within farm and ranch insurance policies make up nearly 80% of the ten most common claims made.

  • – Livestock Coverage: Ranchers can purchase coverage for their livestock, which can help protect against losses due to accidents, illness, and other unexpected events. This coverage can also include protection against theft or damage caused by predators. 
  • – Crop Coverage: Farmers can purchase crop insurance to protect against losses due to crop failures, natural disasters, and other risks that can impact their harvests. This coverage can help ensure that farmers can continue to operate even in the face of unforeseen events that can impact their bottom line.

Crop failure is most often caused by drought, flooding, and pest attacks. In looking at how the recent winter and spring have/are unfolding, this is another reminder to the importance of acquiring the protection given by farm and ranch insurance.

Finding the Right Farm and Ranch Insurance Policy in Oregon

If you’re a farmer or rancher in Oregon, it’s important to find the right farm and ranch insurance policy to protect your business. 

Here are some tips to help you find the right policy:

  • Work with an experienced insurance agent: Farm and ranch insurance policies can be complex, and it’s important to work with an insurance agent who has experience working with farmers and ranchers in Oregon. Look for an agent who can help you understand the specific risks and liabilities associated with your operation and who can provide you with personalized guidance and support throughout the process.
  • Assess your risks: Before purchasing farm and ranch insurance, it’s important to assess the specific risks that your operation faces. This can help you determine if you are working with a provider that is aligned with your specialty, reach, risk, etc.

We’re here to answer all your questions and find a policy that will cover and protect you from the standard risks associated with the farm and ranch industries.

Our Farm and Ranch Insurance service page offers even more of a direct explanation of potential coverage, but for any additional questions, you can call us 

541.482.0831 Ashland

541.857.0679 Medford

Request a quote online