In 2025, protecting your poultry farm requires the right insurance to handle risks like disease outbreaks, severe weather, and income loss. With Arkansas facing challenges such as avian influenza outbreaks and extreme weather, here’s a quick guide to the key coverage areas you need:
- Property Protection: Covers buildings, equipment, and feed storage.
- Livestock Coverage: Protects against disease outbreaks and bird mortality.
- Income Loss Protection: Secures revenue during business interruptions.
- Liability Coverage: Handles worker safety and animal welfare claims.
- Arkansas-Specific Needs: Includes flood, storm, and disease-specific policies.
Start by evaluating your farm’s assets, work with an experienced Martin Agency insurance agent, and review your policies annually to ensure comprehensive protection.
Core Insurance Types for Poultry Farms
Buildings and Equipment Coverage
Martin Agency policies are tailored for poultry operations, covering essential structures like growing facilities, laying houses, egg gathering stations, and service buildings. These policies ensure your modern equipment and facilities are protected.
Key areas to consider:
- Structural Coverage: Insures poultry houses, laying houses, and egg collection facilities based on current construction costs.
- Essential Systems: Covers vital equipment such as ventilation systems, standby generators, and transfer switches.
- Mobile Equipment: Protects farm machinery like tractors and implements used daily.
Now, let’s focus on safeguarding your flock.
Poultry Loss Protection
This type of coverage addresses losses from unexpected events like disease outbreaks (bird flu, salmonella) or contamination [1].
It typically includes:
- Protection against unexpected flock deaths caused by accidents or natural disasters.
- Coverage for losses tied to diseases like bird flu and salmonella.
- Compensation for expenses related to flock culling and sanitization.
- Coverage for egg recalls due to contamination.
Farm Liability Protection
After ensuring your property and livestock are covered, liability protection is crucial. It helps manage risks tied to accidents or disruptions on your farm, especially when non-owned animals under your care are affected [4].
This coverage includes:
- Protection against third-party injuries occurring on your farm.
- Legal defense costs for cases involving animal welfare concerns.
- Damages caused by equipment malfunctions.
- Coverage for incidents involving farm workers.
Income Loss Protection
Income loss protection, also known as business interruption coverage, helps maintain financial stability during unexpected shutdowns. Policies often cover immediate revenue losses and recovery expenses, such as repopulation and sanitization costs.
Insurance Coverage Tips: Poultry Operations - Avian Flu
Arkansas-Specific Coverage Needs
Poultry farms in Arkansas face unique challenges, including local weather patterns and operational risks, that require specialized insurance coverage. Beyond standard policies, these tailored options address the specific needs of Arkansas farmers.
Storm and Natural Disaster Coverage
Severe weather is a major concern for Arkansas farms. FEMA reports that just one inch of floodwater can cause over $25,000 in damage [5]. Here's what to keep in mind:
- Flood Protection: The National Flood Insurance Program (NFIP) provides up to $500,000 in coverage for non-residential buildings. However, NFIP policies don’t cover livestock or business interruptions [5].
- Private Market Options: Consider private insurers for additional coverage, including protection against poultry losses from flooding [5].
- Weather Coverage: Ensure your policy includes damages caused by tornadoes and severe thunderstorms.
Bird Disease and Health Coverage
Biological risks, like avian influenza, are a constant threat to Arkansas poultry farms. Disease coverage is critical for protecting your operation.
- Disease Outbreak Protection: Covers avian influenza-related losses, including cleanup costs from quarantine measures [2].
- Sanitization Costs: Insurance for decontamination expenses is essential. Just one gram of infected manure can expose up to one million birds [6].
- Flock Replacement: Policies should cover mandatory culling expenses, as no treatments or vaccines are currently available for avian influenza [6].
Security and Asset Protection
Rural farms in Arkansas often deal with theft and vandalism. Comprehensive security coverage can safeguard your assets. Us here at the Martin Agency, emphasizes the importance of robust protection.
- Equipment Protection: Covers farming tools, ventilation systems, and monitoring technology.
- Inventory Security: Protects feed supplies, medications, and other critical materials.
- Facility Protection: Includes insurance for security systems and surveillance equipment.
Policy Selection Steps
After identifying key coverage areas, the next step is fine-tuning your policy selection to ensure your operation is well-protected.
Choose the right coverage by assessing your assets and risks. This safeguards your farm's financial health and stability.
Farm Value Calculation
Getting an accurate valuation of your farm is critical. Properly accounting for all assets helps avoid underinsurance, which can lead to unexpected costs.
Key assets to include:
- Buildings and permanent structures
- Equipment
- Livestock
- Feed and supply reserves
- Projected revenue
For a detailed approach, consider Whole-Farm Revenue Protection (WFRP). To calculate value, you'll need to provide:
Once you've determined your farm's value, work with an agent who understands the complexities of agricultural operations.
Insurance Agent Partnership
With your asset assessment complete, the next step is finding an experienced insurance agent. A knowledgeable agent can provide personalized advice for poultry operations and other specialized farming needs. Look for agents who offer in-person consultations, industry expertise, regular policy reviews, and strong claims support.
Annual Coverage Review
Farms change over time, and your insurance should reflect those changes. An annual review ensures your policies match your current operations and market conditions.
During your review, consider:
- New or upgraded equipment
- Facility expansions
- Revenue growth
- New or emerging risks
- Shifts in market value
For commodities not listed, use "other" commodity codes and inform the RMA Regional Office [8].
Keep detailed records throughout the year, including updates on inventory, equipment purchases, revenue changes, and operational adjustments. These records make it easier to update your coverage and simplify the claims process if needed.
Conclusion
Insurance plays a critical role in 2025, especially for Arkansas poultry farms, which account for 46.5% of agricultural cash receipts [9]. Use this checklist to help protect your operation from potential risks. Make sure your policies cover both physical assets (like AgriChoice policies for facilities [3]) and unexpected challenges such as disease outbreaks, equipment breakdowns, or natural disasters.
Here's a quick summary of key coverage areas:
- Property Protection: Buildings, equipment, feed storage
- Livestock Coverage: Bird mortality, disease outbreaks
- Business Interruption: Revenue loss, supply chain issues
- Liability Protection: Worker safety animal welfare claims
Your insurance should address risks related to property, livestock, business interruptions, and liability. Regularly reviewing your policies - ideally once a year - can help identify gaps before they lead to costly problems. This approach ensures your farm stays prepared for both routine and unexpected challenges in 2025.
Work with a Martin Agency agent familiar with poultry farming to customize coverage that fits your farm's specific assets, revenue, and future goals.
