Idaho Farm and Ranch Insurance

Agriculture is a vital part of Idaho's economy, with extensive farming and ranching operations throughout the state. From dairy farms in southern Idaho to cattle ranches in the central mountains, agricultural operations require specialized insurance coverage.

Understanding Farm Insurance

Why Standard Policies Don't Fit

Farm operations have unique exposures that standard homeowners or commercial policies don't adequately address:

Farm Insurance Policy Types

Farmowners Policy:

• Package policy for smaller farms
• Combines property, liability, and auto
• Simplified underwriting
• Limited customization

Farm Property Policy:

• Standalone property coverage
• More customizable
• For larger or complex operations
• Paired with farm liability policy

Named Farm Policy:

• Highly customized
• For large agricultural operations
• Specific scheduling of all coverages
• Maximum flexibility

Farm Property Coverages

Coverage A - Farm Dwelling

Covers the main residence on the farm:

• Dwelling structure
• Attached structures
• Fixtures and permanently installed equipment
• Similar to homeowners Coverage A

Idaho Considerations:

• Remote locations affect fire protection class
• Wood construction common in older farmhouses
• Well and septic systems typically covered

Coverage B - Other Farm Structures

Covered Structures:

• Barns and stables
• Equipment sheds and shops
• Grain bins and silos
• Greenhouses
• Fences and corrals
• Wells and windmills

Valuation Options:

• Replacement cost
• Actual cash value
• Functional replacement (older structures)

Coverage C - Household Personal Property

Personal property in the dwelling:

• Furniture and belongings
• Appliances
• Personal effects
• Similar to homeowners Coverage C

Coverage D - Farm Personal Property

Machinery and Equipment:

• Tractors and combines
• Irrigation equipment
• Tillage implements
• Planting and harvesting equipment
• Trucks and trailers (may be separate)

Livestock:

• Cattle, horses, sheep, goats
• Poultry
• Swine
• Specialty livestock

Farm Products:

• Stored grain and hay
• Silage and feed
• Seeds and fertilizers
• Harvested crops before sale

Exam Tip: Understand the difference between Coverage C (household personal property) and Coverage D (farm personal property). Coverage D includes farm-specific items like machinery, livestock, and farm products.

Livestock Coverage

Standard Livestock Perils

Basic farm policies cover livestock against:

• Fire and lightning
• Windstorm
• Hail
• Smoke
• Explosion
• Riot and civil commotion
• Vandalism
• Aircraft
• Vehicles
• Theft
• Accidental shooting

Optional Additional Coverage

Mortality Coverage:

• Death from virtually any cause
• Higher premium
• May require veterinary exam
• Important for valuable breeding stock

Specified Perils:

• Drowning
• Loading and unloading accidents
• Electrocution
• Attack by predators

Livestock Valuation

Idaho Livestock Considerations

• Predator losses (wolves, mountain lions in some areas)
• Winter weather exposure
• Rangeland grazing risks
• Transportation exposures
• Disease outbreaks

Farm Equipment and Machinery

Coverage Approaches

Blanket Coverage:

• Single limit for all equipment
• Easier to manage
• May over/under insure specific items

Scheduled Coverage:

• Individual items listed with values
• More precise coverage
• Requires updating when equipment changes

Agreed Value:

• Pre-determined values
• No coinsurance issues
• Best for specialized equipment

Equipment Valuation Challenges

Inland Marine Coverage

For equipment that moves:

• Farm equipment floaters
• Mobile agricultural equipment
• Coverage while in transit
• Coverage at various locations

Farm Products and Supplies

Stored Grain Coverage

Considerations:

• Price fluctuation protection
• Spoilage coverage
• Contamination coverage
• Fumigation coverage

Valuation Methods:

• Market value at time of loss
• Contract price if pre-sold
• Growing crop vs. harvested crop

Other Farm Products

• Hay and feed stores
• Seeds and planting supplies
• Fertilizers and chemicals
• Stored produce

Farm Liability Coverage

Farm Liability Exposures

Premises Liability:

• Injuries to visitors
• Farm tour accidents
• U-pick operations
• Agritourism activities

Products Liability:

• Injuries from farm products sold
• Contamination claims
• Product recalls

Operations Liability:

• Custom farming for others
• Hired labor injuries
• Neighbor property damage

Farm Employers Liability

Coverage for employment-related claims:

• Workers not covered by workers' compensation
• Seasonal workers
• Family member employees

Note: Idaho workers' compensation has agricultural exemptions; employers liability may be crucial.

Idaho-Specific Farm Risks

Wildfire on Agricultural Land

Property Exposures:

• Rangeland and pasture damage
• Stored hay and feed destruction
• Equipment damage
• Fence and corral losses
• Livestock evacuation costs

Coverage Considerations:

• Civil authority coverage (evacuation orders)
• Extra expense for livestock care
• Business income for farm operations

Irrigation System Failures

Covered Perils (typically):

• Fire and lightning damage
• Vandalism
• Vehicle damage
• Collapse

Often Excluded:

• Mechanical breakdown (need equipment breakdown coverage)
• Wear and tear
• Freezing (may be covered with precautions)

Agricultural Pollution

Concerns:

• Manure storage and runoff
• Chemical application drift
• Contaminated water sources
• Neighbor complaints

Coverage:

• Pollution liability endorsements available
• May require separate environmental policy
• Important for concentrated animal feeding operations (CAFOs)

Crop Insurance

Federal Crop Insurance

Important: Crop insurance is generally NOT part of farm property insurance. It's a separate program:

Administered By:

• USDA Risk Management Agency (RMA)
• Private insurance companies as agents
• Federal reinsurance backing

Common Programs:

• Multiple Peril Crop Insurance (MPCI)
• Revenue Protection (RP)
• Actual Production History (APH)
• Whole-Farm Revenue Protection (WFRP)

Idaho Crops Covered:

• Potatoes (major Idaho crop)
• Wheat and barley
• Dry beans and lentils
• Sugar beets
• Hay and forage
• Various specialty crops

Private Crop-Hail Insurance

• Supplements federal programs
• Covers hail damage specifically
• Available through private insurers
• Often purchased in addition to MPCI

Exam Tip: Remember that crop insurance is separate from farm property insurance and is primarily available through federal programs administered by USDA. Farm property policies cover the farm buildings, equipment, and livestock—not growing crops.