Large vs Small-Scale Hog Farm Insurance

Hog farms: they breed, raise, and nurture swine over time, farming pigs principally for food and skins. Swine farms exist in a variety of sizes and types, with some operating in more niche practices (i.e., raising pork in outdoor conditions or heirloom breeds of pork).

Not all hog farms raise their pigs from the beginning to the end. Some may only raise them from when they wean until when they are market weight. Others solely specialize in the breeding of sows and the raising of feeder pigs, which are later sold to farms that specialize in feeding pigs. All in all, there are many different types of hog farms – but the question is, does the hog farm insurance coverage differ depending on the scale of your farm?

In this article, we address nuances that exist between various hog farms, how farm insurance coverage can differ, and what you need to note as a hog farmer looking to protect their own.

Understanding the Difference Between Small-Scale and Large-Scale Hog Farming Operations in Canada

In the world of swine production, does size make a difference? Can there be such thing as an ideal farm size and, if so, how big is “ideal?” Or is it far easier to manage a smaller hog farm?

Data from the Swine Management Services suggests that small farms and large farms (rather than mid-ranged sized farms) have the highest number of pigs produced. Family farms tend to be smaller farms that can be run purely internally without the need to hire exterior labour, because the family who runs the farm typically lives their too, so they can provide around-the-clock care. By comparison, larger farms are run almost primarily by hired labour and can therefore employ some individuals to provide dedicated labour in specific areas that might fall outside typical working hours.

Both small and large farms are important to agriculture in Canada. A small farm can be as small as a quarter acre, technically. They both offer their benefits and they both have the opportunity to thrive so long as the farmer has a good system in place and a steady yield. Hog farms may focus on one product (swine) or they may choose to expand production to add on additional products.

In short, small and large-scale farms in Canada may differ on actual physical size, but also in the way in which they operate. Ultimately, they are both critical to Canada’s agriculture industry.

Insurance for Small-Scale vs Large-Scale Hog Farms in Canada

While both small-scale and large-scale hog farms share common insurance requirements to protect their livelihoods, from their livestock to their infrastructure, their scale and operations give rise to notable differences in insurance needs. One significant distinction lies in size and scale considerations. Large-scale hog farms typically have higher coverage limits and policy amounts, reflecting the greater value of their assets and livestock.

In contrast, small-scale hog farms may have more modest coverage needs, reflecting the size of their operations. Valuation of assets and inventory is another crucial aspect that varies between the two. Large-scale hog farms often house more extensive herds and maintain larger facilities, necessitating more comprehensive property insurance to cover substantial investments. Conversely, small-scale hog farms might focus on fewer animals and simpler infrastructures, influencing their property insurance requirements accordingly.

Another area of difference may be in environmental/regulatory concerns. Large-scale hog farms face heightened scrutiny due to their potential impact on the environment. They may be required to secure sufficient environmental liability coverage to protect against potential pollution events and comply with stricter regulations at the local, provincial, and even federal levels. Small-scale hog farms, while also accountable for environmental stewardship, might encounter differing regulatory requirements based on their size and location. As such, the two different sizes of farms may face different coverage needs in terms of compliance obligations and environmental coverage. It’s also important to note how much a role business interruption insurance can play in both large and small-scale farms, but how much more coverage may be required for farms on the larger end. Smaller-scale farms will have more flexibility in adapting to disruptions, but larger-scale farmers will have more extensive facilities and herds and, as a result, could face longer/costlier interruptions.

Running a farm is always about keeping business expenses low and profits high. Whether you’re a small-scale, large-scale, or mid-scale hog farm, see Excalibur’s guide on how to save on your farm insurance coverage to learn one method of how to keep your business costs low.

Key Differences in Insurance Needs

Understanding the nuances of insurance coverage for hog farms of different sizes is crucial for safeguarding the future of this vital industry. Small-scale hog farms, with their unique challenges and advantages, require tailored policies that align with their specific operations and asset valuation. On the other hand, large-scale hog farms must address comprehensive risk management strategies, including environmental concerns and regulatory compliance. Despite these divergent needs, certain insurance policies, such as general liability and livestock coverage, remain essential for both small and large operations. Regular risk assessments and updates to coverage are paramount for adapting to the evolving landscape of the hog farming industry.

By seeking out expert advice from insurance professionals, like Excalibur Insurance, hog farmers can navigate the complexities of insurance with confidence, securing their livelihoods and contributing to a sustainable and thriving agricultural sector. Excalibur’s Defenders are more than happy to schedule a call with you today and let you know just why you should use an insurance broker to help tailor coverage for your hog farming operations today.