Many American farmers operate with razor-thin profit margins that can be impacted by factors, such as the type of crop or livestock produced, market conditions, and operational efficiencies. Profitability can also be influenced by things like input costs (seeds, fertilizers, labor), weather conditions, regulatory changes, pests and diseases, and demand for products.
A farmer’s profit can go from black to red with just one extreme flooding event or a change in trade agreements or tariffs.
One financial hazard for farmers that is often overlooked is the loss or damage to farming equipment.
Fires lead to big losses
In 2023, a Nebraska farmer lost when an overnight fire erupted in a storage building. He had packed the building with equipment to protect it from a storm that was forecast to hit the area. In addition to the building, he lost a combine, two tractors, two pickup trucks, a planter, a grain cart, and all his tools. Investigators say a faulty battery cable on one of the tractors sparked, igniting its fuel tank, according to a local media report. The farmer told media he was underinsured and expected most of the cost to rebuild would be out of pocket.
In 2024, a lightning strike at a Lake County, Florida, farm ignited a blaze that , including a corn harvester, tractors, trucks, trailers and collectible vintage trucks. The disaster happened in September of that year, just before the busy harvest season.
Not all loss scenarios involve the destruction of multiple pieces of farm equipment, but even the loss of one key tractor or harvester can have a significant impact on farming operations. New harvesters, for example, can cost anywhere from $100,000 to $500,000. A used combine can cost less, but farmers can generally expect to pay around $100,000 to $150,000 for one, according to , an online equipment liquidator.
The cost to replace lost, destroyed or damaged farm equipment can be an insurmountable challenge to some farmers, especially if they are not adequately insured. Farmers may incur additional losses if the lost equipment leads to a delayed harvest, lost crops or any other type of business interruption.
Even with adequate levels of insurance, farmers should be aware of the hazards that could lead to farm equipment losses.
Natural and man-made hazards
In addition to destructive fires, as noted in the previous real-life examples, farm equipment can also be damage by accidents, such as collisions with other vehicles or equipment. Rollover accidents are common with tractors riding on uneven terrain.
Farm equipment is also susceptible to damage from natural disasters, including tornadoes, flooding, wildfires and hailstorms.
Because farm equipment can be so expensive, there is a risk of theft, especially in rural areas where equipment is often left unattended.
Though less likely, farm equipment can also be damaged by acts of vandalism.
Farmers can take steps to protect their equipment from hazards, natural or man-made. For example, equipment could be moved indoors if severe weather, like a tornado, is in the forecast, or moved to higher ground if flooding is expected. As an additional safety measure, disconnect electronics that may spark a fire.
Even if all precautions are taken, insurance can be necessary to protect farm equipment and, ultimately, the economic viability of the farm. 色多多视频 can help protect farmers from costly losses caused by fires, accidents, natural hazards, theft, and vandalism. Overall, farm equipment insurance is a safeguard that helps protect farmers’ investments and supports the sustainability of their operations.
The American Farmland Trust promotes its efforts to protect American farms with a simple slogan, . The same could be said about farm equipment—for without it, farmers would not be able to produce the crops and livestock necessary to feed Americans.
