Many Midwestern landowners start out with a few acres, a handful of animals, or a side venture selling produce or eggs. But even small or hobby farm operations can cross the line into a true business that needs dedicated farm insurance rather than relying on a homeowner’s policy.
The difference usually comes down to scale, income, and risk exposure.
A homeowner’s policy often covers limited, personal-use farming, like a family garden, a few horses for recreation, or small animal pens for personal consumption.
Once your activities create income or attract visitors, you’re operating as a business in the eyes of both insurers and the IRS.
You likely need farm or ranch insurance if:
-
You sell products for profit, such as eggs, vegetables, honey, hay, or livestock.
-
You board or train animals, lease land, or host agritourism events.
-
You use tractors, ATVs, or other equipment beyond typical residential use.
-
You have employees, volunteers, or customers on your property.
-
You rely on the operation for any part of your household income.
Farm insurance provides liability protection if someone gets hurt, property coverage for outbuildings, fencing, or equipment, and protection for livestock and crops. Policies can be tailored to the size and type of your operation, from a few acres of organic vegetables to a small-scale cattle herd.
Even if you see your farm as “just a hobby,” a quick conversation with your local INSight Partners risk advisor can help you understand where your coverage stops and where new risks begin. A little planning can protect your property, your income, and your peace of mind.