The Rise in Precision Agriculture and What it Means for Insurance

Precision agriculture is reshaping how ag operations help producers make data-driven decisions. These technologies – like GPS-guided machinery to sensors, chemical application machines, precision feeders and farm management software – can significantly improve efficiency and sustainability. However, they also introduce new risks tied to equipment failure, data dependency and system downtime. 

As modern farming and ranching becomes more complex and technology driven, it’s helping famers and ranchers become more efficient. But with the value increase in equipment and other technology driven tools, it’s important to make sure that your insurance coverage has the necessary limits. 

Additionally, this shift sets a clear expectation: farm and ranch insurance must evolve alongside precision agriculture to protect today’s operations as effectively as it did yesterday. If you’ve added new technologies to your operation, make sure to reach out to Farm Bureau to see if your coverage is up to date. 

What Is Precision Agriculture?

Precision agriculture refers to the use of data, automation and advanced technology to manage crops and livestock more precisely and efficiently. By leveraging tools such as GPS-guided equipment, in-field sensors and increasingly autonomous machinery, farmers can tailor decisions to specific acres, plants or animals rather than treating them all the same.

Precision agriculture tools, and other ag machinery, improve productivity and resource use, but they can also represent a significant financial investment, making modern farms and ranches more dependent on sophisticated equipment and technology to operate successfully.

Higher Equipment Costs Mean Higher Coverage Limits

As farms and ranches adopt more advanced technologies, the costs of modern machinery have risen dramatically, increasing both purchase prices and repair expenses when something goes wrong. These technology upgrades also increase the value of a farm’s equipment, sometimes beyond what your current coverage limits were designed to handle. 

This makes it incredibly important to regularly review your equipment coverage limits to ensure accuracy if you need to replace it due to a covered cause of loss. Addressing the higher stakes is a key part of effective farm risk management, helping producers protect their operation from major setbacks if equipment is damaged in a covered loss. 

Why Your Farm Insurance Needs to Keep Up With Technology

Farming used to look very different than it does today, so it’s important that farm and ranch insurance keeps up with the technologies that producers are using. As operations add precision agriculture equipment, software and data-driven systems, a farmer’s coverage may no longer reflect how their operation has evolved or where their biggest risks lie.

Regularly reviewing insurance as you add new technology to your farm or ranch operation helps ensure your coverage is aligned with how equipment is used, how data is relied on and how your operation generates income. Keeping insurance current is an important step to protecting your farm or ranch as it grows and managing the risks associated with the growth.

An Agent Can Help You Adjust Coverage

Every farm and ranch uses technology a little differently, making it more important to work with an experienced agent that can help you identify gaps in your coverage. Reach out to Farm Bureau to review your policy with a SuperCheck® and prevent costly surprises down the road.