Top 5 Farm Insurance Myths

Taking care of your crops, livestocks, upkeep and more is your responsibility and livelihood. To help, we cover your farm or ranch the way you need. We understand Farm Insurance coverage can be stressful to figure out. Especially since there are a number of aspects to think about. When obtaining coverage or looking to update your current policy, stay aware of these common Farm Insurance myths.

Myth #1: Farm Insurance Offered as a Standard Package

  • We know most farm and ranch operations are unique and all have different needs. That’s why Farm Insurance policies are not usually standard packages. There are a variety of policy offerings that are designed to be customized to the specific needs of your farm or ranch. 

Myth #2: Crop Insurance Premiums are High 

  • To encourage farmers and ranchers to use and obtain crop insurance, it is federally subsidized. This means the government helps cover some of the costs. Additionally, to increase accessibility for farmers and ranchers joining the industry, there are programs through the USDA’s Risk Management Agency (RMA) that include a lower premium subsidy and a waiver against fees.

Myth #3: Disaster Assistance > Crop Insurance

  • Disaster assistance coverage includes types of crops, losses, etc., but is limiting. While crop insurance provides a guaranteed amount of coverage. This gives farmers and ranchers the chance to cover an array of crops and losses. 

Myth #4: Farm or Ranch Vehicles Need Auto Insurance Coverage

  • Auto insurance covers most vehicles. However, trucks, tractors or vans used for farm and ranch operations will likely need farm auto coverage to ensure it is covered for your specific needs. 

Myth #5: Crop Insurance Only Covers Corn or Wheat Growers

  • Federally subsidized crop insurance is open to more than 500 different types of crops. Additionally, there is no required minimum acreage to qualify for crop insurance. It is also available nationwide.

There is a lot to think about as you explore Farm & Ranch Insurance policy options. If you have questions or would like to discuss any of these myths, consult your local OKFB Insurance Agent today.

woman smiling while standing in her farm and is aware of farm insurance myths