A Guide to Insuring Your New Louisiana Farm

Farming contributes $3.1 billion to Louisiana’s economy yearly, but agriculture is full of risks. Crop insurance is an important part of a farmer’s budget and business plan. However, it can be confusing and a basic policy won’t provide full coverage.

Do You Need Farm Insurance?

In 2017, Louisiana farmers purchased 7,371 crop insurance policies, insuring 2.8 million acres for $23.9 million. That same year, insurance companies paid claims totaling $43.4 million.

The risks are apparent and new farmers should make it a priority to get in touch with a qualified farm insurance agent. In order to prepare a quote, agents need to know how big your operation is, the workers you employ, what crops you grow, your flood plain status and your distribution model. This lets them take into account all the risks and threats to your livelihood.

Read about Farm Bureau’s basic farm liability policy here.

What is Crop Insurance?

The US Department of Agriculture offers Crop Insurance through partnerships with approved private providers. These providers, like Louisiana Farm Bureau, sell and service policies, while the USDA oversees the program. Crop insurance rates are standardized, which means you’ll get the same quote no matter which agency you choose.

Multi-peril crop insurance protects against disease, pests, adverse weather conditions, and revenue loss due to low output or market pricing. It also covers lack of production due to uncontrollable circumstances, such as a late freeze.

Additionally, it may cover livestock and bees – even oysters. However, you may need a separate policy if you want to insure high-value animals or a herd. Find a complete list of commodities here.

Unique Insurance Coverage Situations

While u-pick operations and stands can be covered under basic farm insurance plans, events or festivals might require specific endorsements.

Similarly, raw or unprocessed products could be protected under general farm liability protections, but after processing, product liability protection may be required. 

New Farmer Incentives

The 2014 Farm Act gives farmers or ranchers with less than five years experience a ten percent reduction on premiums. It also provides an exemption from catastrophe policy administrative fees. Find an agent that understands the nuances of the industry and disclose all income and operations.

Finding The Right Agent Matters

Louisiana Farm Bureau has been insuring farmers for over 60 years. We understand the unique risks faced by farmers throughout our state. As part of the largest farmers advocacy group in the country, we are dedicated to serving the interests of farmers. Having the right coverage is a critical business decision for new farmers. Contact your local agent and get it right the first time.