More than a policy: advocating for insurance that works for farmers

By Mark Reusser, Director, Ontario Federation of Agriculture

Insurance is important in any situation, but it is a particularly high priority for farmers. From hail and damaging winds to flooding and frost, field crops, orchards and vines face threats from weather extremes. Heavy snow loads and fires pose risk to livestock barns and other farm facilities – and theft is a growing concern in rural areas, leaving farm equipment and other items increasingly vulnerable.

It’s no surprise, then, that farmer members of the Ontario Federation of Agriculture (OFA) identified insurance as number two on the list of issues they’re most worried about in relation to their businesses in OFA’s 2024 Farm Business Confidence Survey. That’s up from fifth spot only a year before.

The nature of farming means that farmers and farm businesses have special insurance requirements that aren’t necessarily covered by conventional solutions. Farmers often use a combination of private and government-backed insurance programs to reduce risk on the farm.

This includes production insurance to protect against yield reductions or crop losses; farm property insurance covering buildings, equipment, livestock and stored product; or liability insurance to protect against injuries or damage from third parties.

There is also insurance for business interruption, cybersecurity, workplace safety for employees, and vehicles, as well as insurance programs such as AgriStability and AgriRecovery to help with income support or disaster relief when margins fall or unexpected events happen that aren’t covered elsewhere.