Do you manage a chicken coup that produces enough eggs to sell for a bit of side income? Or do you rent a sizable piece of land to use for farming activities?
Congratulations, you’re a small farmer who likely qualifies for small farm insurance.
We have specialized hobby farm insurance policies that are custom designed with you in mind.
Next, let’s learn a little bit more about small farm insurance.
WHAT’S THE DIFFERENCE BETWEEN A REGULAR FARM AND A SMALL FARM WHEN IT COMES TO INSURANCE?
Farms can vary wildly in terms of type but there are only 3 categories when it comes to farm classification for insurance:
- Regular Farm
- Small Farm / Hobby Farm
- Not a Farm
HOW BIG CAN A FARM BE TO BE ELIGIBLE FOR SMALL FARM INSURANCE?
Less than 10 acres.
Anything less than 1 acre and you’re not considered a farm at all (sorry Mark, your tomato plants growing on your deck don’t count) and anything more than 10 acres could mean you’re no longer considered a small farm and you’d be looking at regular farm insurance.
HOW MUCH INCOME CAN I MAKE WHILE STILL BEING CONSIDERED A SMALL FARM?
Less than $8,000 Annual Gross Income (not profit).
This is how much annual income you’re able to generate before your farm could go up a rung in the farm hierarchy.
If you generate more than $8,000 per year through your farming activities, you would be vaulted up into more of a commercial farm status.
HOW MANY ANIMALS CAN I MANAGE WHILE STILL BEING COVERED BY SMALL FARM INSURANCE?
Less than 6 (other than saddle animals).
Once you house and raise 6 or more live animals on your farmland you may no longer be looking at a small farm insurance policy.
WHAT’S THE DIFFERENCE BETWEEN A HOBBY FARM AND A SMALL FARM?
Semantics.
Some say po-tay-to some say po-tah-to but at the end of the day, hobby farm insurance and small farm insurance essentially mean the same thing.
Essentially, a small farm (or limited farm) is a small tract of land, with or without a dwelling and/or outbuildings with minimal agricultural activities and limited expectation of profit. To qualify for hobby farm rates for Liability a farm must have at least 2 of the following:
- Total insured property of less than 10 acres
- Total annual gross income of less than $8,000
- Total number of farm animals less than 6 (other than saddle animals)
WHAT DOES SMALL FARM INSURANCE COVER?
Typically small farm insurance can more or less cover anything that regular commercial farm insurance covers, just on a smaller scale.
This can include;
- Livestock insurance
- Produce coverage
- Outbuildings and dwellings
- Farm property insurance
- Farm equipment insurance
- Farm liability insurance
HOW MUCH DOES SMALL FARM INSURANCE COST?
Like most types of insurance, what you pay for small farm insurance will depend on a variety of variables such as:
- Where your small farm is located
- If your small farm insurance is bundled with other policies like home insurance
- Your deductible
- Claims history of the policyholder
- Overall liability risk
- Type and amount of produce and livestock
Submit a request for a hobby farm insurance quote and we’ll be happy to walk you through your options.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
