Insurance options help farmers operate with confidence
Being in an unpredictable industry affected by weather and market changes, farmers face many risks, but, with the right coverage programs, they can protect their crops, livestock and income.
Farmers who are not protected can face a range of liability risks. For example, if crops or livestock suffer damage from unpredictable weather, the farmer bears the cost of the loss. Additionally, accidents involving farm equipment and property damages could lead to further liability expenses.
There are a variety of insurance administrators and risk management programs available for farmers in the Ozark region to choose from, each offering different coverage options tailored to the unique needs of agricultural operations. A few options available to farmers are Arkansas Farm Bureau’s insurance policies, The USDA’s Livestock Risk Protection program, and State Farm insurance policies.
Arkansas Farm Bureau, which is one option to residents of the state, has serviced customers for over 65 years and offers programs for farmers. The Ag Promise, an insurance campaign launched by ARFB, is specifically tailored to meet farmers’ needs and address operational risks.
“Farm Bureau is an organization for farmers,” said Arkansas Farm Bureau Insurance Agent Kristopher Muldoon. “We insure a lot of agricultural products and equipment, because that is what we were founded on.”
Another insurance option, State Farm, offers Farm and Ranch insurance. This insurance policy provides insurance protection for the Farm Personal Property, such as machinery, grain, livestock and farm tools. Farm buildings and structures can also be covered by customized policies.
State Farm’s website explains its policies can be tailored to meet the unique insurance needs of all operations, regardless of size, whether owners or renters, or whether raising crops or livestock.
The Livestock Risk Protection program, a federally subsidized insurance program, meaning it is a government-backed tool to protect livestock producers from price declines, administered by the USDA Risk Management Agency. The LRP is a price insurance policy developed as a price risk management tool for livestock operations.
Through the LRP, farmers choose a coverage price and an ending period that is customizable to their specific operation. It is a federally-subsidized insurance program protecting farmers from declining market prices.
“As far as our company goes, we know farming. We know what it is like to farm. Most of us either grew up on farms or have farms currently,” said Muldoon. “We know what farming is and what it takes. Our company is behind that a hundred percent.”
Having coverage gives farmers a peace of mind, knowing they have protection over their operations from the unexpected. With multiple great coverage options available, they can feel confident that they are protected.
Karley Williams is a student at the University of Arkansas
