Insurance and Finance

FAQs: Farm & Ranch Insurance

By Staci Parks 7.10.23

For many Texans, their land is their livelihood. Agriculture is big business here: Texas is home to 247,000 farms—the most of any state—that hold 126 million acres of farmland, according to the U.S. Department of Agriculture. Chances are, you’ll find a farm or ranch in nearly every corner of the state, stretching from the Panhandle to East Texas to the Rio Grande Valley.

For more than 70 years, Texas Farm Bureau Insurance has helped Texans across the state protect their land and livelihood. With that experience, Agents answer some of the most common questions about farm and ranch insurance coverage.

Q: What is a Texas AgAdvantage policy?

A: Texas Farm Bureau Insurance’s Texas AgAdvantage policy is buildable and customizable; it compiles several different coverages, ranging from liability to livestock, into a single policy. Many farmers and ranchers choose this policy because it allows them to have flexibility with their coverage. Plus, having everything rolled into one policy helps keep the business side of farming and ranching streamlined.

Q: What does farm and ranch insurance cover?

A: Texas Farm Bureau Insurance’s Texas AgAdvantage policy can cover nearly everything on a farm or ranch, including equipment, structures, livestock, and even homes. Items covered by this policy can include:

  • Tractors.
  • Hay balers.
  • Utility vehicles.
  • Barns.
  • Grain silos.
  • Owned and rented acreages.

Corey Fagan, a Texas Farm Bureau Insurance agency manager in Bonham, advises policyholders to contact their Agent as soon as possible anytime there’s been a change on their farm, such as purchasing new equipment or building a new barn. It can be as simple as sending your Agent a picture of a vehicle’s VIN number or a copy of the bill of sale. Bottom line: If it’s not outlined in the policy, it’s not covered.

Q: Are my animals covered?

A: Yes, a Texas Farm Bureau Insurance AgAdvantage policy can cover animals such as cows, chickens, goats, and pigs. You can also add animal collision to the policy. This way, should a wayward cow be struck and killed by a vehicle, you’d have coverage for the animal. However, if you have pasture cattle or a record-breaking show steer, ask your Agent about a specialized policy to ensure you have the right amount of coverage for your livestock asset.

Q: How do I know I need farm and ranch coverage?

A: The words “farm” and “ranch” don’t always trigger the need for this type of coverage. Land ownership—20 acres or more, to be exact—is usually a good rule of thumb when it comes to farm and ranch coverage. There are several different types of exposures that come along with owning land, even if you’re not farming. “If someone can get hurt on your property, we want to protect you,” says Meredith Campbell, an agency manager in Plainview. “Talk to your Agent about your specific operation, and let them build the best policy for you.”

Q: Where does homeowners coverage end and farm and ranch coverage begin?

A: Farm and ranch coverage begins when you own property that’s not typical of a homeowner or you’re using your property or land in a way that a homeowner does not. For example, if you own chickens or harvest crops for profit, you need farm and ranch coverage. It’s designed to cover all the extras that aren’t covered under your property insurance policy.

Q: Can I adjust my farm and ranch coverage as needed?

A: Flexibility is one of the best things about the Texas AgAdvantage policy. Crop and livestock numbers fluctuate from season to season, and there’s no sense in keeping coverage on something you no longer have. All it takes to update your policy is a quick call to your Agent.

Fagan says it’s a common occurrence to talk with farmers and ranchers who’ve baled a significant amount of hay in a day and want to add fire protection for it. “Three months from now, they’ll sell half of it, and they’ll call us and say, ‘Hey, I need to remove half of that hay, and I want to keep the other half.’ The policy adjusts to reflect what they currently have in something as simple as hay.”

Q: How do I get farm and ranch coverage?

A: Ideally, Agents like to meet farmers and ranchers at their location, so they can get an idea of how much coverage they’ll need, as well as what needs to be covered, Fagan says. However, some of this information can be gathered over the phone if needed. To get a coverage quote, your Agent will need to know:

  • The location of your property or properties.
  • Acreage.
  • When buildings and other structures were built.
  • A description of buildings and other structures.
  • Livestock count.
  • Number of employees (if necessary).

Your land and its needs are unique. Seek coverage that will grow and shift with you. Call your Agent today to build a farm and ranch policy that works for you.

Wondering about general property insurance? We’ve got you covered. Check out the 10 most common property insurance FAQs answered by Texas Farm Bureau Insurance Agents.

Coverage and discounts are subject to qualifications and policy terms and may vary by situation. © 2023 Texas Farm Bureau Insurance