Risk Management and Insurance
Find information, recommendations, and advice on risk management in farming. Topics covered include farm insurance, as well as crop insurance for fruits, vegetables, and field crops. Resources on understanding agricultural liability, health care options, and farm owner’s insurance are available.
Types of Farm Insurance
Insurance shifts some of the business risks to the insurance carrier, making it an integral part of the farm’s risk management strategy. There are different types of agriculture insurance to choose from, specially tailored to cover the business, as well as its employees, crops, and/or livestock. Insurance can also cover the operation's revenue.
As agribusiness insurance is often one of the farm’s top expenses, it’s advised to consult with an insurance professional to determine a well-fitting coverage. In general, when choosing a farm owner's insurance, the most appropriate policy will be based on factors such as the farm’s primary industry, livestock head number, buildings constructed, and the number of acres.
Farms with roadside markets that are in a permanent structure may further consider business owner's insurance. This provides protection against events that are not covered under the farm owner’s policy, such as damage to permanent signs, employee dishonesty, and theft or loss of money.
As farming is centered around food production, product liability insurance is worth considering, as well. The farm owner’s policy offers a limited amount of product liability insurance; however, certain production and marketing activities may require additional coverage. These activities include selling to restaurants, direct marketing of products in their natural state, and making and/or selling value-added products. In this section, find information and tips for proactive insurance management.
Crop Insurance
Crop insurance is a valuable farm risk management tool that covers losses caused by adverse weather conditions, pests, diseases, and price fluctuations. The Federal Crop Insurance Program is designed to provide a safety net for farmers and is available nationwide.
In Pennsylvania, crop insurance policies are available for at least one commodity in every county. Fruit crops covered include grapes, apples, pears, peaches, and nectarines. The main types of insurance for fruit growers are yield protection and whole-farm revenue protection.
Vegetable crops covered include potatoes, cabbage, green peas, green beans, sweet corn, and tomatoes. Producers can purchase three types of vegetable crop insurance – yield protection crop insurance, dollar value protection, and whole-farm revenue protection.
Field crop insurance policies in PA cover several different crops, including wheat, barley, corn, tobacco, and spring oats. Producers can choose from a wide range of insurance policies, such as yield protection coverage, revenue protection, and area risk protection.
Farm Risk Management
Managing risk is a core aspect of farming and a key component to the operation’s ongoing success. Various factors – including uncertainties like policy changes and unexpected events – can have a significant effect on farm income. By careful planning and choosing from alternatives, risk management strategies can help reduce financial losses.
The USDA Risk Management Checklist and User’s Guide can help both new and experienced farmers work through the risk management planning process. These tools further cover potential risk areas and offer research-based articles and resources. Learn more with Penn State Extension’s video series on assessing and managing risk.
In this section, gain access to educational resources on a wide array of topics, including preparing an emergency plan for livestock producers and developing a contingency plan for dairy farms. Existing and potential farmers who wish to discuss risk management planning and engage with other farmers can join the New Farmer Checklist and Chat webinar.
- Tools and Apps
Gestión de Riesgos del USDA—Uso de la Lista de Verificación
USDA Risk Management Checklist in Spanish. - Articles
Tips for Using Social Media in Crisis Management and Communications
Social media can be a valuable tool in crisis management and communications. Extra consideration and planning should be undertaken, however, to ensure its use doesn't further add to the crisis. - Articles
Developing a Business Plan
An important task in starting a new venture is to develop a business plan, which is a "road map" to guide the future of a business or venture. - Articles
Food for Profit: Insurance for Food Entrepreneurs
Food business owners are held responsible for any harm that comes to employees, visitors who come to your establishment, and consumers who eat your products. - Articles
Crop Insurance for Industrial Hemp
Interest in the production of industrial hemp is ahead of the tools needed to provide protection against risk. - Articles
Crop Insurance for Pennsylvania Field Crops
Multi-peril crop insurance allows you to insure against losses on your farm due to adverse weather conditions, price fluctuations, and unavoidable pests and diseases. - Articles
Crop Insurance for Pennsylvania Vegetable Crops
Crop insurance is available nationwide and gives you the freedom to choose the level of coverage you need based on your own risk experiences and preferences. - Articles
Crop Insurance for Northeast Nursery Crops
Crop insurance is available nationwide and gives you the freedom to choose the level of coverage you need based on your own risk experiences and preferences. - Articles
Crop Insurance for Pennsylvania Fruit Crops
Crop insurance is available nationwide and gives you the freedom to choose the level of coverage you need based on your own risk experiences and preferences. - Videos
A Simplified Approach to Assessing Risk
This three-part series identifies resources that can be used by new or experienced farmers to guide them through the risk management planning process. - Articles
Agritourism in Pennsylvania - Legal and Regulatory Issues
This article provides an overview of issues agricultural operators in Pennsylvania must consider if they would like to start or expand an agritourism operation. - Articles
Food Entrepreneurs
Are you looking to start a new food business? Are you an existing business looking for information on how to maximize your profitability? - Videos
Women in Agritourism: Perspectives on Risk Management
This series of videos highlights the perspectives and experiences of five women with different agritourism businesses on production, human resource, legal, and marketing risk management in Pennsylvania. - Articles
Building an Emergency Response Plan for Livestock Producers
Whether you raise pigs, sheep, goats, or cattle, having an emergency plan for their care is critical for animal welfare and business continuity. - Articles
Product Liability Insurance
If you are adding value to or direct marketing all or a portion of your crop, this document contains information for your operation. - Articles
Crop Insurance
This document includes a checklist of the information you will need to contact an insurance provider to purchase crop insurance. - Articles
Vehicle Insurance
Any vehicle that has a license plate in Pennsylvania is required to be covered by insurance. - Articles
Food Venture Risk Management Plan
If you have started or are planning to begin a value-added food business, you should consider your risk management plan and what will be included within that plan. - Articles
Why Bother With Insurance? Tools to Hone Your Insurance Risk Management Plan
With the high risk exposure in agribusiness, insurance policy options should be carefully considered for proper coverage. This article provides helpful tips for proactive insurance management. - Articles
Whole Farm Revenue Insurance
This crop insurance product will insure your farm income. It can be used along with traditional crop insurance products. - Articles
Homeowner's/Renter's Insurance
If you live away from your farm or rent where you live, this document contains valuable information for you. - Articles
Business Owner's Insurance
This product is generally used by operations with a roadside market. - Articles
Additional Specialty Products Insurance
This document covers specialty insurance products for your farm operation. - Webinars
Free
Farm Transition Talk: Insurance Agency Discussions
When Watch NowRecorded Nov 22, 2022Learn about farm/agriculture insurance items concerning farm transition, succession, and the overall exit plan.