Complete Guide to New Mexico Farm Insurance | Trusted Choice

New Mexico Farm Insurance

Complete Guide to New Mexico Farm Insurance

Meg Stefanac | February 17, 2020
Midwest farm with spring corn crop and red barn

New Mexico is home to nearly 25,000 farms located on 43.9 million acres of land. These farms are major suppliers of beef, sheep, pecans, hay, onions, and other commodities. If you are among the many farmers in this southwestern state, you can protect your investment with a suitable farm insurance policy.

Independent insurance agents are available to help you find the best coverage at the most affordable price. These local agents can explain your various coverage options and can provide you with customized quotes from a variety of reputable insurers. Contact an insurance agent near you to get started.

What Is New Mexico Farm Insurance?

Farm and ranch insurance is specialized coverage that combines the benefits of both home and business insurance in a policy package designed to meet the unique coverage needs of farm and ranch owners.

This insurance can cover you against most of the hazards you are likely to face as a farm owner in New Mexico, including wildfires, severe storms, hail, and liability lawsuits. You can further protect your business by adding crop insurance and livestock insurance to your coverage mix, when appropriate.

What Does Farm Insurance Cover?

Farm insurance can provide you with liability and property coverage for your New Mexico farm or ranch.

Liability insurance covers court costs, legal fees and damages associated with third-party injuries or property damage for which you or your farming business can be held responsible. Some types of liability coverage you may be interested in having include:

  • Premises liability insurance:  This covers costs related to injuries or property damage sustained by guests on your farm property. It may be particularly important if you frequently host events for families on your farmland.
  • Product liability insurance: This covers costs related to third-party injuries or illnesses caused by products your farm produces, sells, or promotes
  • Commercial vehicle liability insurance: This covers liability expenses if you or one of your workers is responsible for a collision in the course of doing work for your farm such as while transporting goods to a local farmers’ market.
  • Workers’ compensation insurance: Though this is not actually liability insurance, it can protect you from liability lawsuits if employees on your farm are hurt while doing their jobs. In New Mexico, it is not required by law that you cover farm workers, but given the high probability of worker injury, it may be worth considering.

Property insurance is designed to cover the cost of repairing or replacing property that was damaged or lost due to a covered event such as a severe storm, wildfire, or hail. Your farm insurance policy can cover the following types of property:

  • Your farmhouse: This replaces a conventional homeowners insurance policy by providing coverage for your home as part of your farm insurance policy. Your home must be located on your farm property to qualify for this coverage.
  • Outbuildings: Your farm insurance also covers damage to other structures on your farm property such as storage sheds, silos, barns, and garages.
  • Equipment and machinery: Farm equipment is necessary for the successful running of any farm. This insurance can cover the cost to repair or replace damaged equipment such as tractors, balers, threshers, and sprinklers.
  • Other property: Additional riders or specialized policies may be needed to cover other farm property such as livestock, irrigation systems, and electric fencing.

In addition to the liability and property coverage offered by farm insurance, you may also want coverage for your crops. If so, you can purchase a separate crop insurance policy. Talk to a local independent insurance agent to learn more.

What Does New Mexico Crop Insurance Cover?

Crop insurance is a government-backed insurance product managed by the Federal Crop Insurance Corporation (FCIC), which falls under the US Department of Agriculture. It is designed to cover crop damage and the resultant loss of income this damage can cause. It can also provide coverage for business losses sustained due to a significant drop in the value of the commodities you are producing.

There are three different types of crop insurance you can choose from.

  • Crop-hail insurance: This is designed to cover loss of crops due to damage by hail only. This coverage is the most affordable of the three and comes with a low deductible. It may be purchased at any time throughout the growing season.
  • Multiple peril crop insurance (MPCI): This covers crop losses due to a number of potential hazards such as severe weather, drought, disease, insect infestation, wildfires, and floods. MPCI can only be purchased at the beginning of the growing season, before your crops are planted.
  • Crop revenue insurance: This is designed to cover your losses if your crops produce a low yield or if the market price of your commodities is significantly lower than expected.

If you are interested in adding crop insurance to your farm insurance portfolio, an independent insurance agent can help. Talk to an agent near you to learn more.

How Much Does New Mexico Farm Insurance Cost?

The cost of farm insurance in New Mexico will vary from farm to farm because rates dependend on several different factors such as:

  • The size of your farm
  • The number of buildings on your land
  • The number of employees working on your farmT
  • The age and quality of your farm equipment
  • Whether you are insuring any livestock
  • The inherent weather risks in your area
  • The amount of liability insurance you wish to purchase

A local independent insurance agent can help you determine how much coverage you need and can provide you with a selection of customized quotes from a few top-rated insurers. That way, you can be sure that you are getting your New Mexico farm insurance at a competitive price.

Why Work with an Independent Insurance Agent in New Mexico?

When you are shopping for farm insurance in New Mexico, you can benefit from working with an experienced independent insurance professional. These local agents can assist you by explaining your various options, helping you determine how much coverage is sufficient for your farm, and helping you find the insurance provider that offers the coverage you need at the most competitive price.

Find an independent insurance agent near you to learn more about finding the right insurance for your New Mexico farm.

Now, who's ready to get their insurance problems solved?