Insurance For Farmers

Insurance Policies to Consider For Farming in New Mexico

What Is Covered by Farm Insurance?

For any New Mexico ranch or farm, farm insurance also offers property and liability coverage. Liability insurance pays for legal fees, court expenses, and damages incurred as a result of property damage or third-party injuries that usually the agricultural business may be held liable for. The following are some examples of liability coverage that you may want to consider:

• Premises liability insurance: This protects you against expenses associated with property damage or injuries caused by visitors to your farm. It's especially essential if you regularly hold family gatherings on your property.
  
  
• Product liability insurance: Coverage protects your farm against expenses associated with third-party accidents or illnesses induced by the goods it manufactures, sells, or promotes.
  
  
• Commercial vehicle liability insurance: It protects you from financial loss if you or any of your employees cause an accident while working on your farm, such as delivering products to local farmers' markets.
  
  
• Workers' compensation insurance: While this is not liability insurance, it may protect you against liability claims if your farm's employees are injured while performing their duties. Farmworkers are not obliged to be covered by law in New Mexico, but considering the high likelihood of harm, it may be important to consider.

Property insurance is intended to cover the costs of repairing or rebuilding property that has been damaged or destroyed as a result of a covered event, including severe storms, wildfires, or hails. The following kinds of property may be covered by your farm insurance policy:

• Your farmhouse: Your farmhouse is covered as part of the farm insurance policy, which eliminates the need for a separate homes insurance policy. To be eligible for this coverage, your house must be on your farmland.
  
  
• Outbuildings: Damage to additional structures on your farm, like silos, storage sheds, barns, and even garages, are covered by farm insurance in New Mexico.
  
  
• Farm equipment and machinery: Farm machinery and equipment are essential for the effective operation of any farm. Tractors, threshers, sprinklers, and balers are types of equipment that may be covered by this insurance.
  
  
• Other farm property: Other agricultural property, including animals, electric fences, and irrigation systems, may require specialist policies or additional riders.

You may need crop insurance along with your property and liability coverage provided by farm insurance. If that's the case, you'll need to get separate crop insurance plans. To learn more, contact local insurance agents who can guide you on the most suitable plan for your farm.

What Is Covered by New Mexico Crop Insurance?

Crop insurances are government-backed insurance plans administered by the US Department of Agriculture's Federal Crop Insurance Corporation (FCIC). Its purpose is to compensate for crop damage as well as the resulting loss of revenue. It may also cover losses incurred as a result of a substantial fall in the price of the commodities you're producing.

You may select from three different kinds of crop insurance.

• Crop-hail insurance: It is intended to cover crop losses caused only by hail damage. This plan is the most cost-effective of the three, with low deductibles. It is available for purchase throughout the growth seasons at any point in time.
  
  
• Multiple peril crop insurance (MPCI): It protects crops against a variety of threats, including extreme weather, wildfires, drought, insect infestation, disease, and floods. MPCI may only be bought before the crops are planted at the start of the growing season.
  
  
• Crop revenue insurance: This protects you from losing money if your crops produce a poor yield or in cases where the market prices for the commodities are considerably lower than anticipated.

How Much Does Farm Insurance in New Mexico Cost?

The cost of farm insurance in New Mexico varies from farm to farm due to a variety of factors, including: 

• The size of your farm 
• The number of buildings on your property 
• The number of employees working on your farm
• The age and quality of your farm equipment 
• Whether you are insuring any livestock 
• The inherent weather risks in your area 
• The extent of liability insurance you want to get

A local insurance agent could assist you in determining the amount of coverage you require and offer you a number of tailored quotations from top-rated providers in New Mexico. That way, you can be sure you're receiving a good deal on your farm insurance in New Mexico.