Farm Insurance Facts

Canada’s Agriculture Day started in 2016 and was launched as a day of celebration for farmers. February 15, 2023, brings special attention to our agricultural industry and the pride we share in growing food.

With this theme in mind, we want to educate the community on farm insurance:

4 Facts You Should Know About Farm Insurance

Whether you have a little hobby farm that produces small crops for the local farmer’s market or a large operation that requires full-time attention, you know all too well the risks and frustrations that come with crop production.
Farm insurance helps mitigate the financial loss that accompanies the risks and challenges of running a farm, but not all farmers understand the ins and outs of farm insurance. Here are four interesting facts you may not know about farm insurance policies.

1. Farm Insurance is Not One Size Fits All

Unlike homeowners’ insurance, farm insurance doesn’t have a standard policy that includes the same set of predetermined coverages. Every farm is unique, so the policy is tailored to the unique needs of the farming operation. That’s why farm owners must work closely with their insurance broker to customize a policy that adequately protects their land, farm equipment, farm buildings, livestock, feed, and crops.

2. Standard Homeowners Insurance Covers Some Hobby Farming Activities

If you’re not looking to make money from your farm, but consider it to be a hobby, your standard homeowner’s insurance policy may cover some farming activities. However, most policies typically exclude farm equipment or farm outbuildings. If you’re relying on homeowners insurance to cover your entire hobby farming activities, talk to your insurance broker so you know exactly what is covered and what is not.

3. Hobby Farming for Profit Requires Separate Farm Insurance

If you decide to expand your hobby farm and start selling crops at the local farmers market, you will need to upgrade from using your standard homeowner’s insurance policy for coverage and add a hobby farm policy. Why? It is because standard homeowner policies often have a “business pursuit” exclusion or “professional services” exclusion that does not cover business activities at home. To qualify for hobby farm insurance, your farm must meet certain criteria, which usually include having:

• • A single farm location
  • No farm employees
  • 10 acres or less of workable land
  • Less than $8,000 in annual farm receipts
  • Less than 6 farm animals

4. Full-Time Farming Requires a Farm Owner’s Policy



For farm owners who farm exclusively as their full-time job, a farm owner’s policy is essential. At a minimum, you’ll want to have property coverage, liability coverage, and livestock coverage. You can also add endorsements that cover things that may be unique to your farm like fencing.
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Your farm is your pride and joy. Give it the protection it deserves with an insurance policy that fits your farming situation. Contact your Merit insurance broker today to help you with the highly specialized Ontario farm insurance coverage you need to keep your farm operating smoothly. Get a Farm Insurance Quote Today!