A coverage guide for agents: Protecting small farmers and ranchers

Small farmers and ranchers face challenges such as unpredictable weather and fluctuating market prices, which can have unique implications that can threaten their livelihood. For insurance agents, understanding these challenges and providing tailored solutions is crucial to building trust and offering meaningful support.

This guide will provide you with insights into the specific risks small farmers and ranchers encounter and outline coverage options designed to meet their needs. By equipping yourself with this knowledge, you can confidently offer protection to ensure that their operations thrive, secure their legacy, and in turn, grow your client relationships.

Common risks and coverages

While these risks can affect farms of all sizes, small farms can be devastated by them, considering they have fewer financial resources to recover from a loss and can often be underinsured. It’s important to note that these recommended coverages are common considerations for small farms but may not be necessary for every operation. Each farm is unique in its size, scope and activities, so coverage needs should be assessed on a case-by-case basis. Work with your customers to identify the policies and endorsements that best align with their specific risks and requirements.

• Weather: Severe weather events such as droughts, hail and windstorms can devastate crops, damage infrastructure and hinder operations. These unpredictable occurrences highlight the need for tailored farm insurance to help them get back to business quickly.
• Livestock: For ranchers, livestock represents one of their most valuable assets. Risks like accidental shooting, electrocution, vehicle collision causing death, or theft can lead to significant financial losses. Livestock insurance provides coverage for livestock against accidents or natural disasters.
• Equipment breakdowns: Modern farms and ranches rely heavily on machinery and equipment for efficiency. Malfunctions or breakdowns can disrupt operations and result in unexpected repair costs and loss of income. Farm equipment insurance covers repair or replacement costs for broken or damaged machinery and tools critical to operations. It protects from specific farm-related risks such as flooding, cab glass breakage and more for tractors, combines and other machinery.
• Liability: Liability-related issues, such as bodily injury caused by an animal or third-party property damage caused by machinery, can pose significant financial risks to farming operations. Liability insurance protects against third-party claims for bodily injuries or property damage occurring on the farm.
• Market volatility: Economic fluctuations and changing market demands can impact income stability, adding another layer of uncertainty. Business interruption insurance assists farmers in managing financial challenges during operational downtime caused by covered perils.

So much more than coverage

Beyond providing essential insurance coverage, we are proud to support small farms with a wide range of additional services designed to help them thrive. From risk management solutions that help safeguard operations to legacy planning that secures the future of the farm, our offerings go far beyond traditional insurance.

• Legacy planning: Introduce farmers to Nationwide’s Land as Your Legacy^® program. It’s designed to help families safeguard their farms for future generations through comprehensive succession planning and resource management.
• Education: Empower clients with resources on safety practices, market trends and new technologies to stay resilient in fast-changing conditions.
• More affordable technology: Consider sharing information about the adoption of monitoring tools, such as Razor Tracking, HAYTECH or EnforcerOne to improve decision-making and problem-solving. Nationwide customers get preferred pricing on these game-changing technologies.
• Risk management resources: To help mitigate common risks, encourage customers to use our reliable experts, on-demand resources and tailored agtech solutions.