Just because you don’t have a full-time farming operation doesn’t mean you don’t need to protect your farming assets. In fact, many people incorrectly assume that their Homeowners insurance covers their large gardens and small farming equipment and outbuildings. If you’re farming for a profit, it might be time to consider hobby farm insurance.
While the definition of a hobby farm varies, it generally refers to a non-commercial farm that takes in less than $10,000 in revenue per year. Unlike a commercial farm, hobby farms don’t have employees on the payroll and are limited to a single location with up to 500 acres. While you must be doing some sort of farming to qualify as a hobby farm, this can include gardens and small amounts of crops, livestock, animal showing, beekeeping, or other small farming operations. One common instance of hobby farming includes people who sell a small amount of farmed goods at a local farmer’s market.
While hobby farms don’t require the same coverage as a full-fledged farm, they often require protections beyond that of a typical Homeowners insurance policy. In fact, farm equipment and farm outbuildings aren’t typically covered by Homeowners insurance, and many policies include a standard exclusion for “business and farming activities,” which can spell big trouble if disaster strikes.
Because every hobby farm is different, there are a range of protections you might consider depending on your specific operation. If, for example, your hobby farm includes cattle, domestic sheep, swine, goats, horses, mules, donkeys, alpacas, or llamas, you might consider Livestock coverage. If you use expensive equipment like automated irrigation or refrigeration systems, you might consider Farm Equipment Breakdown coverage. At Grange Insurance Association, our Country Estates Insurance Program is a great starting point for hobby farm insurance. We take our extensive knowledge of the insurance industry and couple it with your specific coverage needs to craft a policy just for you and your farm.
Founded by farmers to protect farmers, Grange Insurance Association has been serving the unique needs of agricultural families throughout California, Colorado, Idaho, Oregon, Washington, and Wyoming for 125 years. Our local independent insurance agents understand your challenges, share your values, and can tailor a policy to meet the specific needs of your farm or operation.
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