Farm Insurance – the basics

Farm Insurance – Hobby vs. Commercial


When considering farm insurance there are three criteria which help decide if your farm is considered a Hobby or Commercial Farm. An insurance broker needs to know the following details in order to provide the right insurance:

  • The size, or acreage, of the land
  • How much income, if any, the farm generates
  • How much livestock is on the farm

What makes a Hobby Farm a Hobby Farm?

Think small – in farm insurance terms, a hobby farm must:

  • be 10 working acres or less in size,
  • generate up to $8,000 per annum only,
  • have less than six animals or livestock, with the exception of saddle animals.

Commercial Farms

An insurance broker will ask plenty of questions in order to provide the correct recommendations to insure a commercial farm. The following areas are evaluated:

  • Crops
  • machinery
  • livestock
  • farm buildings
  • land rental and properties

If your home is located on the farm property a separate Homeowners policy is required.

Farm Policy Requirements

Liability Insurance, Home Insurance, and Business Interruption Insurance are three important coverages to have in place for commercial farms. A separate homeowners policy is required for personal dwellings and if there are farm vehicles on the property a separate auto insurance policy is required.


Farm insurance requires a more personal level of service and working with an experienced insurance broker will give peace of mind and reassurance that the right coverages are in place.

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