Hobby Farm Insurance

Homeowner or hobby farmer — which side of the fence are you on? It could make a big difference if you aren’t properly insured.

Hobby Farm Insurance is designed specifically for smaller non-commercial rural acreage, homes, out-buildings, equipment and livestock. It’s country living but not making your living as a farmer.

Many people who own smaller farms or ranches believe their homeowners insurance provides the protection they need. Yet many hobby farms have exposures that are not covered by homeowners insurance, such as farm equipment and farm outbuildings.

Are You A Farm?

The first thing to determine is whether you are a "farm." This may sound incredulous. However, there is a growing number of hobby and small operations throughout the United States. This could be the grandma raising prize vegetables and selling them at a road stand each season or the garage wine maker. The growing number of retirees each year adds to the number of such ventures.

Do those activities constitute farm business? The answer is not always clear. A standard homeowners' policy may cover certain hobby activities that are not conducted at a profit. However, some insurers maintain that once production and sales of a product occur, then a farm policy is necessary.

Only by identifying all operations can the farm be properly insured.

Some questions that you will be asked to help properly identify what could be happening on your farm include the following:
• Will crops be grown?
• Will livestock be raised?
• Will products from the farm be sold directly to the public?
• Will employees work on the farm?
• Will equipment be used?
• Will children or visitors visit the farm?
• Will animals be boarded for others?
• Will equipment be leased?
• Will land be rented?
• Will buildings be used in farm operations?

What Are The Guidelines for Hobby Farms?
• Primary dwelling must be owner occupied
• Less than 50 acres
• Less than 10 large farm animals (no exotic animals)
• Farming is not the primary occupation
• No employees involved with farm activities
• Maximum of $20,000 in annual farm receipts
• Agri-tourism, petting zoos or u-pick operations not accepted
• Boarding of or caring for other people’s animals not accepted
• No fee for hunting or fishing exposures

Other eligibility guidelines may apply