Risky Business: How Agents and the Industry Help Protect Farmers, Ranchers

By Bill Martin | February 23, 2015

When you think of hazardous jobs, what comes to mind? First responders, military professionals, even NFL football players are typically associated with some of the most dangerous jobs on earth. But what about farmers and ranchers?

The National Safety Council reports that of the approximately 3.1 million people who work on farms and ranches, 1,300 die each year and 120,000 are injured. In fact, statistics show farmers are 800 percent more likely to die while working than other workers.

Without question, those that provide us with our breakfast, lunch and dinners work in one of the most dangerous sectors of the economy.

Although the farm and ranch industry has transitioned over the years from small, family-owned operations to larger corporate entities, the backbone of the agriculture sector firmly remains small business. And no different than any other small business, farmers and ranchers depend upon the insurance industry to not just transfer risk, but to assist in reducing costly accidents. Thus the agents, managing general agents, and companies that specialize in the agricultural segment play an important role in the overall health of our food supply.

Statistics show farmers are 800 percent more likely to die while working than other workers.

Diana Trachier, farm and ranch manager at South & Western General Agency, says agents who work directly with small farmers can make a big difference when writing new business.

“In order to make a quality submission to the insurance marketplace, the retail agent has to assess the hazards intrinsic to farming and ranching,” Trachier says. “As part of this task, the agent is ideally suited to identify areas of concern and is positioned to offer loss control measures that can eliminate accidents or minimize their effect on the business should the unfortunate take place.”

Farm Hazards

As with most commercial concerns, fire is typically the most debilitating event for farmers and ranchers. From 2007 to 2011, the National Fire Protection Agency (NFPA) studied the number of fires and their effects on America’s farms. During the study period, fire accounted for more than $55 million in damages to farm structures. Hence, reducing the number and severity of farm fires should be the number one goal for both the insured and insurer.

Joe Haynes, president and CEO of Sanger & Altgelt LLC, a large independent agency located in San Antonio, Texas, that specializes in farm and ranch business, says that many fires can be eliminated by taking a common sense approach to farm risk assessment.

“Nothing replaces the eyes and ears of an onsite visit to an account,” says Haynes. “When an agent takes the time to understand the risk before making the submission, it’s a natural for him to offer simple, common sense risk management and safety assistance. Obviously it’s in everyone’s interest to eliminate losses.”

“Looking at how fire accelerants like common fuels are stored can be the difference between a major catastrophe and business as usual,” Haynes says. “In addition, knowing where hay stacks or bails are positioned and what brush control measures are in place is critical in farm and ranch risk assessment.”

Hazards related to hunting, fishing and other non-agricultural exposures like caliche and water sales to oil and gas operators need to be identified and properly addressed, Haynes says. “Checking for hold harmless and indemnity agreements with lessors along with insurance compliance is immensely important. Aviation operations like crop dusting and runways should not be overlooked.”

Along with fire, farmers and ranchers face other daily hazards that can make the difference between not just profit and loss, but life and death. Farmers and ranchers work with heavy machinery on a regular basis, and when injuries occur, many are fatal. The National Agricultural Tractor Safety Initiative reports that the common farm tractor causes about 130 deaths annually. In addition to tractors, hay balers, grain augers, skid steer loaders, corn pickers, combines and brush hog mowers cause thousands of deaths and injuries annually.

“Knowing the operations of a farmer or rancher is the single-most important thing an agent can do for his customer,” says Trachier. “If he is growing cotton, the exposures with equipment are very different than an equine operation.

The smaller the operation, the more important it is that the insurance industry, from agent to company, is able to provide the risk management services he needs. “It’s more than just selling a policy … it’s providing a valuable service the farmer or rancher may not even know is needed.”

Risk Management Help

There are thousands of resources available that promote farm and ranch safety on the internet.

For example, the websites for the National Safety Council (NSC.org) or the Farm Safety Association (farmsafety.ca) are two good places to start. However, carriers and MGAs that specialize in agribusiness are also more than willing to assist.

So the next time you sit down to eat, remember the dangers and hazards farmers and ranchers undertake every day, along with the role the insurance industry has in making not just the food safer, but the one responsible for bringing it to your table safer.

Topics Agencies Agribusiness Market

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Insurance Journal Magazine February 23, 2015
February 23, 2015
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