Virginia farms and ranches face significant risks that can cost tens or even hundreds of thousands of dollars without adequate protection. From the weather to the many challenges livestock can face, farms and ranches are exposed to threats that other industries may not even consider. This is why farm and ranch insurance is a non-negotiable part of a smart business strategy.
Data show that farm losses in Virginia have been trending upward from 2004 to 2019. During the same period, the number of policies and premiums earned by policyholders decreased while the acreage insured increased. In other words, most farms might carry some basic insurance.
Still, they often skip out on valuable policies beyond the minimum to protect their investment and livelihood. To avoid poor outcomes, partner with an insurance company familiar with the farm and ranch industry—and choose local for the best results.
Exclusive Risks Faced by Farms and Ranches in Virginia
While farms and ranches are tasked with overcoming many of the same challenges that businesses in other industries do, they also face risks that are exclusive to this niche. Farms and ranches in Virginia are exposed to two main categories of particular risks: climate-related risks and agricultural risks.
Climate and Weather-Related Risks
Because so much of a farm’s profits rely on the outdoors, changes to the weather or climate can interrupt business or ruin an entire year’s harvest. Floods, fires, hurricanes, and more may destroy growing plants before harvest, cause damage to equipment or structures, and slow or stop operations entirely.
Agricultural and Livestock-Specific Hazards
Whether a farm is focused on agriculture, livestock production, or a mixture of both, these living entities pose challenges. Illness, disease, crop failure, and worker injury caused by livestock are all factors that must be considered, among many others, when choosing an insurance policy.
Comprehending Local Regulations and Compliance
In addition to policies such as general liability, workers’ compensation, and crop insurance that most farms should carry anyway, the state of Virginia requires farms to comply with certain coverage minimums. These include:
- Farm-use vehicles – Following a 2024 change in vehicle regulations, farm owners must now demonstrate that their vehicles are being used for farming purposes in order to register them appropriately. Any vehicles that do not acquire the farm use tag must be covered under a general liability insurance policy that includes both personal injury and property damage protection.
- Pollution – Farms may cause pollution of the natural environment in many ways, such as oil leaks from equipment or diesel spillage and overuse of pesticides. However, Virginia has recently been targeting animal waste, and a new rule would change how waste must be disposed of for dairy, meat, and egg production farms. Thus, pollution insurance is necessary to avoid the harm a farm can cause and pay for remediation when necessary.
Developing Trust Through Local Community Engagement
The recommendation for farmers considering whom to trust with their insurance needs is simple: go local. There are many reasons to trust a local insurer versus an out-of-state provider, but the main advantages are:
- Knowledge of the area – The most significant benefit of trusting a local insurance agency is their familiarity with the area around the farms they are insuring. First-hand knowledge of the weather, climate, and risks posed by a specific part of the country equips insurance agencies with the knowledge to properly create and recommend policies that address farms’ needs. This provides more complete coverage with fewer gaps and accidental oversights.
- Quicker response times – An out-of-state insurance agency may not be aware of a local weather event or other disaster that has occurred in a farm’s region. Comparatively, local agencies can respond more quickly to claims because they are living the same experience. They are also located within the same time zone, so they can remain in contact during the same hours as active farms.
- More relevant reputation – A local insurance agency has a greater vested interest in providing great service because, unlike out-of-state and nationwide agencies, reviews matter more. Poor service and negative reviews can sink a local insurance company, incentivizing high-quality service.
Protect Your Farm and Ranch With Burton & Company
Farms and ranches keep America going with food and products we need daily. However, the risks they face can completely destroy their livelihoods should things go awry, and insurance coverage is an essential piece of the puzzle.
Burton & Company offers customized protection from a local insurance agency familiar with Virginia farmers’ challenges. Contact Burton & Company today for personalized farm and ranch insurance.
