A Quick Primer on the Basics of Farm and Ranch Insurance

In 2021 alone, sales of animals and animal products in the U.S. amounted to $195 billion, according to one U.S. Department of Agriculture (USDA). This shows just how profitable the farming business can be. If you own a farm, you should protect it at all costs since any misfortune can result in substantial financial losses. For instance, an expensive piece of machinery can break down and stall operations. Also, a disaster can kill your livestock and leave you financially devastated. While such misfortunes are bound to happen, you can always shield your investment by purchasing the right farm and ranch insurance coverage. Here’s a quick primer on the basics of farm and ranch insurance.

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This is an insurance policy that provides coverage for farm equipment and machinery, livestock, and buildings. Perils such as natural disasters, accidents, bodily injuries, and property damage can occur on your ranch. Without a proper financial plan, such perils can leave you in financial turmoil, which is why insurance coverage is necessary.


Any insurance policy aims to shield the policyholder against financial struggles that may occur following named perils. Some perils are rare. For example, it may take a long time before your farm animals die due to a hailstorm. Even so, just one peril is enough to destabilize you financially. Worse still, some regions in the U.S. are prone to natural disasters, jeopardizing farm animals’ safety. Other accidents, such as a tractor overturning and injuring a farm worker, can occur even in the safer zones. This is why it is prudent to prepare for possible future perils instead of acting when damage has already happened. Farm and ranch insurance covers the following:

  • Injured farm animals: Livestock can get injured in various ways on your ranch. In worst-case scenarios, they can die, leaving you with losses to handle. Farm and ranch insurance policy provide financial coverage in case of such. This way, you won’t have to start from scratch following a disaster.
  • Farm machinery: When costly farm equipment gets damaged, you may spend a lot to fix or replace it. The good news is that farm and ranch insurance covers your farm machinery in case of damage caused by a covered event or peril.
  • Stored farm products – The farm and ranch insurance policy extends its coverage to farm products stored in your home. For instance, if rain damages stored grains, this policy will pay for the losses incurred.
  • Bodily injuries and property damage: Every year, at least 60 in 100,000 farm workers die due to farming accidents,  per the National Ag Safety Database. If a third party gets injured on your farm, you may have to pay for treatment and legal costs. Farm and ranch insurance shields you from injury-related expenses and third-party property damage.


There are two significant exclusions from farm and ranch insurance – crops and fencing. Even if a disaster damages your crops before harvesting, this policy will not pay for the losses. The same applies to your farm fencing that gets damaged.


Whether you’re a farmer or rancher in Texas, it is crucial to secure insurance coverage for your rural property. At Advanced Insurance Group, we understand the unique needs of agricultural operations and can provide tailored coverage options. Contact us today to discuss your insurance needs and ensure the protection of your valuable assets.

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