Insurance Curator Farming in the USA faces growing operational and capital risk: extreme weather, supply-chain disruption, machinery breakdowns, and market swings. For commercial farms in high-production regions — e.g., Iowa corn/soybean country, Nebraska cattle operations, California’s Central Valley specialty crops, and the Texas Panhandle — choosing the right combination of business interruption and equipment protection insurance is essential to preserve revenue and keep operations running after a loss.
This guide explains what to buy, how policies work, typical costs, and recommended carriers for U.S. farming operations focused on commercial intent (income protection and equipment replacement).
Quick summary: What you need to protect your farm’s income and equipment
- Business interruption / farm income protection — replaces lost revenue and ongoing expenses when a covered peril halts operations. Often added to farmowners or commercial package policies.
- Equipment protection — scheduled equipment floater, physical damage, inland marine, and equipment breakdown cover replacement/repair costs for tractors, combines, irrigation systems, and custom harvesting gear.
- Supplemental coverages — crop insurance (RMA programs), feed and livestock business interruption, contingent business interruption, and extra expense coverage to speed recovery.
How Business Interruption for Farms works (and what it pays)
Business interruption (BI) for farms typically pays:
- Gross revenue lost during the recoverable period (often tied to how long it takes to repair/replace insured property).
- Continuing fixed costs (mortgage, payroll, lease payments) while operations are halted.
- Extra expenses to minimize shutdown (renting equipment, hauling crops to alternate facilities).
Key traits:
- BI coverage must usually be triggered by a covered physical loss (fire, vandalism, windstorm where property is covered). Pure market downturns or price changes usually are not covered unless you have a revenue protection crop policy.
- Civil authority and contingent BI endorsements can pay if a supplier or buyer’s loss prevents your farm from operating.
Typical waiting periods and limits: Standard policies include a 48–72 hour waiting period and limits based on 12–24 months of gross earnings; endorsements modify both.
Equipment protection options for farms (what to buy)
- Scheduled Equipment Floater (SEF) — insures specified pieces like combines and tractors on a scheduled value (best for high-value or specialty equipment).
- All-risk physical damage / collision — for equipment used on-road or hired/borrowed machinery.
- Inland Marine — covers movable farm equipment during transit or while mobile.
- Equipment Breakdown (Boiler & Machinery) — covers failure of mechanical/electrical systems (irrigation pumps, grain-drying fans, refrigerated units).
- Rental Reimbursement / Rental Equipment Coverage — pays for leasing replacements while yours are repaired.
Benefits of scheduling: faster settlement (agreed value), no depreciation dispute, and covered worldwide exposures for equipment taken off-site (e.g., custom harvesting).
Typical costs and real examples (U.S. locations)
Insurance costs vary widely by region, size, crop/livestock type, claims history, and equipment value. Below are representative figures (approximate ranges observed across carriers and industry sources) and sample carrier rates for U.S. farms.
- Farmowners/Commercial Farm Package
- Small hobby/small commercial: $800–$2,500/year
- Mid-size commercial farms (annual revenue $250k–$1M): $2,500–$10,000+/year
- Scheduled Equipment Floater
- Premiums typically 0.5%–2.5% of scheduled value annually (agreed-value scheduling often at the higher end for specialty equipment).
- Example: $250,000 in scheduled equipment → $1,250–$6,250/year.
- Equipment Breakdown (boiler & machinery)
- Often $300–$2,000/year depending on exposures and limits.
- Business Interruption / Farm Income Endorsements
- Endorsement cost generally 0.5%–2% of insured revenue depending on limits and waiting period.
Carrier examples (U.S. market):
- Nationwide — known for tailored farmowners packages and scheduled equipment options; customers with combined crop, livestock, and equipment often see bundled savings. Expect Nationwide farmowners premiums in the ranges above depending on exposures. https://www.nationwide.com/business/insurance/farm
- State Farm — strong regional agent presence, commonly competitive for small to mid-sized operations; scheduling available for tractors/combines. https://www.statefarm.com/insurance/farm
- Farm Bureau / American Farm Bureau Insurance — competitive in many rural states (Iowa, Nebraska, Kansas, Texas) with local agents and programs oriented to farmers.
- Progressive / Travelers / The Hartford — offer equipment breakdown and commercial inland marine products; Progressive also insures specialty ag equipment on a commercial auto basis for on-road exposures.
Sources for program structure and average premium insights:
- USDA Risk Management Agency (RMA) — crop revenue programs and links to risk management tools: https://www.rma.usda.gov/
- Insurance Information Institute (III) — overview of farm insurance and common coverages: https://www.iii.org/article/how-does-farmowners-insurance-work
- Nationwide farm insurance product pages (examples of options and endorsements): https://www.nationwide.com/business/insurance/farm
Comparison table: cover type vs. typical use and cost drivers
| Coverage type | What it pays | Best for | Typical cost drivers |
|---|---|---|---|
| Business Interruption / Farm Income | Lost revenue + continuing expenses | Dairy operations, custom harvesters, greenhouse growers | Revenue size, waiting period, limit period, cause of loss |
| Scheduled Equipment Floater | Agreed value replacement for specific machines | High-value tractors, combines, specialty harvesters | Equipment age, serial #, agreed value, theft exposure |
| Equipment Breakdown (B&M) | Mechanical/electrical failure repair/replacement | Irrigation pumps, grain-drying systems, refrigeration | Age, maintenance records, surge protection |
| Inland Marine | Transit and mobile equipment damage | Custom harvesters, bale wagons moved off site | Distance, transit frequency, operator training |
| Rental Reimbursement | Rental while equipment repaired | Critical seasonal gear (harvest season) | Rental availability, rental cost caps |
How to shop and get the best policy (practical checklist)
- Inventory and schedule high-value items — list serial numbers, model years, and agreed values for tractors, combines, irrigation pumps, and harvesting attachments.
- Quantify lost revenue — prepare 12–24 months of historical revenue to set realistic BI limits and elimination periods.
- Bundle coverages — ask agents for farmowners + scheduled equipment + equipment breakdown bundles to gain multi-policy discounts.
- Ask for endorsements critical to your region:
- Civil authority and contingent BI (if a major buyer or processing plant nearby could cause shutdown).
- Seasonal increase or peak season scheduling for harvest surge.
- Compare 3+ carriers and ask about deductibles — higher deductibles lower premiums but increase out-of-pocket costs.
- Document maintenance and inspections — carriers give better rates and smoother claims for well-documented maintenance.
- Verify replacement cost vs. actual cash value — for critical machinery, prefer agreed replacement cost.
Carrier selection by region (example recommendations)
- Iowa / Midwest row-crop farms: Farm Bureau, Nationwide, State Farm — strong local agent networks and crop insurance compatibility.
- California Central Valley (specialty crops/fruit/vegetables): Nationwide, The Hartford (commercial equipment breakdown), plus specialty agribusiness brokers for high-value greenhouse/packhouse exposures.
- Texas Panhandle / Great Plains (large irrigated operations, feedlots): Farm Bureau, Progressive, local mutual insurers — focus on equipment breakdown and scheduled mobile equipment.
- Nebraska / Cattle operations: State Farm, Farm Bureau, regional mutuals — prioritize livestock BI and equipment for feed/hay processing.
Claims, documentation, and recovery best practices
- Keep digital inventories and photos of equipment, serial numbers, and maintenance logs.
- Document pre-loss income and demonstrate the causal link between the insured physical loss and revenue decline for BI claims.
- Engage adjusters early and request interim payments for urgent equipment repairs or rental costs.
- For crop-related revenue interruption, coordinate BI claims with your crop insurance agent and consult RMA resources: https://www.rma.usda.gov/
Recommended next steps
- Prepare your equipment inventory and 12 months of business financials.
- Request tailored quotes from 3 carriers (Nationwide, State Farm, Farm Bureau or local mutual) and compare:
- Limits for BI (12–24 months),
- Agreed value scheduling for high-value equipment,
- Equipment breakdown and inland marine endorsements.
- Consider consulting an agricultural insurance broker for large commercial farms or specialty-crop operators.
Related resources
- Best Insurance For Crop & Agricultural Operations: Multi-Peril Crop Insurance Explained
- Best Insurance For Small Farms: Revenue Protection, Pasture and Hail Coverage Options
- Best Insurance For Agricultural Operations Comparing Private Insurers, Agents and RMA Options
References
- USDA Risk Management Agency: https://www.rma.usda.gov/
- Insurance Information Institute: https://www.iii.org/article/how-does-farmowners-insurance-work
- Nationwide Farm Insurance products: https://www.nationwide.com/business/insurance/farm