Farms that specialize in livestock, for example, should have higher limits on livestock than farms that specialize in crops. The type of livestock a farm has influences the cost of insurance. For horses, farmers generally pay between 2.5% and 5% of the horse’s total value in insurance. A horse at a value of $5,000 and a rate of 3% would be about $150 a year for a single horse. 

Crop insurance can also be added to farm insurance to replace crops that are destroyed due to fire, theft, lightning and other dangers. 

Farm insurance is designed specifically to cover the dangers an agricultural business may face day to day, from crop damage and cattle death to lawsuits. The cost of this insurance is hard to pinpoint, as premiums very depending on several factors such as your location, size of the farm, coverage limits and more. 

Depending on how much insurance you have and at how much coverage, the price you pay for farm insurance may be vastly different than your neighbor’s. On average, farm equipment alone may be insured around $15 for $1,000 in value. For example, say your combine is worth $380,000. This means it would cost approximately $5,700 to insure. Calculate the value of your equipment before searching for coverage to find a policy that is right for your farm. Every farm is different and may need different limits of insurance. 

Speak with your insurance agent and shop around to answer questions you may have about your farm insurance policy. Also ask about ways you can save money such as bundling coverages and asking about discounts.