🌾 Farm & Ranch Insurance

What Farm & Ranch Insurance Actually Covers

A farm policy isn't just homeowners insurance with a barn added on. It's a specialized package built for agricultural operations, combining property, liability, and operational coverage under one umbrella:

• Farm dwelling — your home and personal belongings, similar to homeowners insurance but designed for a rural setting
• Farm buildings and structures — barns, grain bins, machine sheds, livestock shelters, and other outbuildings. Each structure needs its own coverage limit.
• Farm machinery and equipment — tractors, combines, planters, sprayers, implements, and tools. Coverage can be scheduled (listed individually) or blanket (total value).
• Livestock — covers cattle, hogs, horses, sheep, and other animals against death from covered perils. Blanket coverage covers the whole herd; scheduled coverage lists individual high-value animals.
• Farm liability — protects against injuries to visitors, customers, delivery drivers, and others on your property, as well as damage caused by your farming operations off-premises.
• Farm auto — trucks, pickups, ATVs, and UTVs used in farm operations. Some farm policies include limited farm vehicle coverage; others require separate commercial auto.
• Stored grain and hay — covers harvested commodities stored on the farm against fire, wind, collapse, and other perils.

Common Pitfalls and Costly Gaps

Farm insurance is more complex than almost any other type of coverage. Here's where South Dakota producers most often end up underinsured:

• Equipment values are outdated — A new combine can cost $500,000–$800,000. A used one in good shape is still $200,000+. If your policy lists equipment at values from five years ago, you'll collect far less than it costs to replace after a loss. Review your equipment schedule every year.
• Blanket coverage isn't enough — Blanket coverage sets a single limit for all buildings or all equipment. If a tornado takes out your biggest machine shed and everything in it, a blanket limit might not be enough to cover it. Make sure your most valuable structures and equipment are individually listed.
• Liability gaps from side activities — Do you let hunters on your land? Run a pumpkin patch? Board horses? Host farm tours? Any activity beyond basic farming creates additional liability exposure. If it's not specifically listed on your policy, it may not be covered.
• Hired and borrowed equipment — If you borrow your neighbor's auger or hire a custom harvesting crew, your farm policy may not cover their equipment if it's damaged on your property. Inland marine or bailee coverage may be needed.
• Pollution liability exclusions — A fuel tank leak, a chemical spill, or manure runoff can create enormous cleanup costs. Standard farm policies typically exclude pollution. If you store fuel, chemicals, or manage livestock waste, ask about pollution liability coverage.
• Livestock mortality gaps — Standard farm policies cover livestock against specific perils (fire, lightning, etc.) but often don't cover death from disease, birthing complications, or unexplained causes. If you have high-value breeding stock, you may need a separate livestock mortality policy.
• Failing to report new buildings — Built a new shed last summer? If you didn't add it to your policy, it's not covered. Many farm policies require you to report new structures within 30 days.

Farming and Ranching in South Dakota

Agriculture is the backbone of South Dakota's economy, and the risks here are significant:

• Hail and wind — A single storm can collapse grain bins, peel roofs off machine sheds, and destroy fencing across miles. South Dakota's severe weather season runs roughly May through September, and the damage can be catastrophic.
• Blizzard livestock losses — April blizzards catch calving operations at their most vulnerable. Cattle losses during spring storms can devastate a ranch's year. Make sure your livestock coverage addresses weather-related mortality.
• Wildfire in the west — Western South Dakota rangeland is increasingly vulnerable to wildfire. Fencing, outbuildings, stored hay, and livestock can all be lost in a single fire event.
• Grain bin and storage risks — Stored grain is a major investment. Fire, wind damage, and bin collapse are all real risks — and the value of what's inside can exceed the value of the bin itself.
• Long distances from fire response — In rural South Dakota, the nearest fire department might be 30 minutes away. A fire that would be a minor claim in town can be a total loss on a farm.
• Succession and estate complications — When multiple generations work the same operation, making sure each party's equipment, buildings, and liability are properly covered gets complicated. Gaps in coverage between family members are common.

Why This Is a Job for an Independent Agent

Farm and ranch insurance is where a captive agent's limitations become most obvious. A captive agent has one company's farm program — take it or leave it. An independent agent writes with multiple farm carriers and can piece together coverage from different companies to match your exact operation.

That matters because no two farms are alike. A 5,000-acre row crop operation in the James River Valley has completely different needs than a 10,000-acre cattle ranch in the Badlands. An independent agent has the carrier options to build a program for either — or for the mixed operation that does both.

Many of South Dakota's independent agents grew up in agriculture. They understand the urgency when a storm takes out a bin of grain or a blizzard kills calves. They pick up the phone, get the adjuster out, and fight for your claim.

Helpful Questions to Ask Your Agent

Farm insurance is complex. These questions will help you and your agent make sure nothing falls through the cracks:

• Are my equipment values current — what would it actually cost to replace my combine or tractor today, not five years ago?
• Do I have blanket or scheduled coverage on my buildings, and is the limit realistic if I lose my biggest structure and everything inside it?
• Are my side operations covered — hunting access, agritourism, horse boarding, custom work?
• What happens if equipment I've borrowed or rented is damaged while it's on my property?
• Is my stored grain covered, and at what value — current market or a fixed amount?
• Does my policy cover a fuel tank leak, chemical spill, or manure runoff, or is pollution excluded?
• How does our coverage work across generations — is each family member's equipment, buildings, and liability properly separated?