The Rising Costs of Farming: How Insurance Can Help

Every farmer knows that the cost of running a business in agriculture is never stagnant. While it can be a very rewarding profession, unpredictable market swings and supply chain issues make farming a high-stakes industry with unique risks and exposures. The right insurance policies can help add a little security in farming by providing financial security when facing the unexpected.

Why Are Farming Costs Increasing?

The following are responsible for rising prices of running an agricultural business:

• Labor challenges—Hiring seasonal and full-time workers has become more costly and competitive.

• Equipment and repairs—Already expensive machinery has become even more costly to buy and maintain.

• Climate change—Increasingly erratic weather patterns can affect crops and yields.

• Inflation and fuel prices—Diesel and gas prices are rising, increasing production costs and making it more expensive to operate essential machinery.

What Insurance Should Farmers Consider?

The following can be essential coverages for farmers:

• Farm property insurance can cover damage to buildings, silos, and farming equipment caused by fire, theft, or weather.

• Farm liability insurance can help with financial losses if someone is injured on your property or if the farming operations cause damage.

• Livestock insurance can cover your livestock in instances of illness, accidents, or disasters as outlined in the policy.

• Crop insurance can financially protect farmers when crops are lost due to drought, floods, disease, or even market price fluctuations.

• Business interruption insurance can help with lost income if farming operations must halt due to a covered peril.

Contact Us

Farming can be an incredibly fulfilling occupation, but it comes with unique risks and exposures, especially as costs for essential materials are on the rise. The right insurance policies can help financially protect farmers from significant losses due to covered incidents. Reach out to W E Walker-Lakenan Insurance in Cape Girardeau, MO & Benton, MO for more information on the best insurance for your operations and budget.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.