The tremendous growth in farm assets may have some farmers exposed to an increased risk — not enough insurance to cover losses.
“Producers are sitting on more valuable assets, and from an industry standpoint we are seeing a more litigious atmosphere,” says Craig Conroy, supervisor of the farm underwriting department, Country Financial. “Much of our discussions center on ensuring our customers not only have the right coverage, but in the amounts that will protect their assets.”
Think about the assets on your farm and the last time you reviewed personal property and liability insurance. What were corn and soybean prices? And how much did it cost to put up that grain bin? If you haven’t updated your policy in the past year, your coverage may be insufficient.
“Dramatic price increases in commodity prices as well as things like machinery and steel have put many policies out of whack with what is needed today,” says Deb Etheridge, vice president of insurance, Water Street Solutions. “Proper risk management means having insurance in place that properly covers the value of the farm’s assets. And when we are talking about farmland values and commodity prices at current levels, all producers need to make sure that they have the right policies in place to cover their needs.”