More Wisconsinites are starting hobby farms for fun and to supplement their primary income. Whatever the motivation, it’s important to protect this investment of time and resources. Here are some things to consider when choosing the right insurance for your hobby farm.
What is a hobby farm?
When do you know if your little flock of chickens or apple tree is actually a hobby farm? That’s the most important question as it will help you determine what kind of insurance is most appropriate. Whether you have an acre of land or several acres you may be considered a hobby farm. Key factors that define a hobby farm are:
- If the farm is not your primary income source
- If have equipment, e.g., tractors or other machinery
- If you raise crops and/or animals for your own use
How can you limit exposure?
Even if your hobby farming doesn’t make a big profit, it can be painful to lose those extra farm sales if a storm damages buildings or equipment. That’s why you need to look for a policy that limits your exposure.
What happens if you sell vegetables at a local farmers markets or roadside stand and a food poisoning situation occurs? It’s another reason why liability coverage needs to be part of your coverage package.
“It’s important to think about all the potential risks that exist on your hobby farm and understand exactly what your policy covers to ensure that you have the right protection,” says Rural Mutual agent Dan Push.
What type of insurance do you need for a hobby farm?
If you have a large garden in your backyard or grow produce for your own use, a homeowners policy is the right policy option for you. That’s especially true if you have no livestock or equipment.
Rural Mutual Insurance offers a hybrid of a homeowners and farm policy called Country Estate coverage. The Country Estate Policy is ideal if you have a farmstead with outbuildings such as a pole shed and/or your farm assets, e.g., tractors or other machinery are valued under $100,000. This policy is also applicable if you raise any animals or fowl or grow produce and generate an income less than $10,000. This will cover hobby farmers who have a limited amount of agricultural risks.
If your farm grows in acreage, becomes a full-time job for you and your family and you start investing in more expensive equipment, you will need to protect your livelihood through a broad array of farm and ag coverage options.
As the #1 farm insurer in Wisconsin, Rural Mutual is here to help protect Wisconsin farmers’ investments in the future – whatever their size. Contact a Rural Mutual agent who can walk you through all the available policy options to determine which one is best for you.
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