Farmland insurance acts as a financial shield for landowners, farmers, and agricultural businesses from economic setbacks due to sudden events. It protects:
Farmland is essential to Canada’s food supply, environment, and rural economy. Over the past 70 years, farms have grown larger and cities have expanded into rural areas.
This change makes it harder for small farms to survive. Canadian farmland insurance safeguards these lands. It makes sure that farmers can keep working and growing food for the future.
A farm in Ontario had its soil polluted by chemicals from a nearby factory. The farmer could not afford the cleanup, and the land became unsafe for crops.
The insurance policy for their farmland covered environmental damage and helped pay for soil restoration. This saved the farm, kept the land usable, and prevented it from being lost.
The Canadian government supports farmers in adopting sustainable practices and managing financial risks through new programs. Lower interest rates and rising farmland values are also changing investments. But these changes also come with challenges:
grain company failures: drought and low prices have caused grain buyers to shut down, leaving farmers unpaid
climate risks increasing: more extreme weather events are making farmland harder and more expensive to insure
farm accidents: vehicle crashes and injuries can harm farmland, equipment, and vital farm property
Higher borrowing costs and rising insurance premiums make it harder for farmers to get coverage. Four grain companies failed in 2024 which also exposed weaknesses in farm financial protection.
Explore the farm insurance category to see other farmland insurance-related options.
Those involved in farming and agriculture, especially those with land and attached assets, need this insurance. This includes:
Farmland insurance helps keep farms running and secure investments.
Farmland coverage safeguards against hazards that threaten land, property, and farm operations. Common insurance options include:
farm liability insurance: protects landowners from lawsuits over injuries or damages on their property
property insurance: covers barns, silos, storage buildings, and equipment from fire, theft, and vandalism
co-insurance for farm outbuildings: ensures farm structures are insured at full value to avoid penalties
livestock insurance: covers losses from disease, accidents, or theft of farm animals
business interruption insurance: helps replace lost income if farm operations stop due to covered events
There are also government-backed programs like AgriInsurance that provide additional protection. Farmland insurance in Canada offers both private and public options to help farmers shield their land and income.
The Farm Income Protection Act (FIPA), created in 1991, aids farmers from income losses. It allows the federal government to work with provinces to support farm incomes. It also provides a framework for programs like AgriInsurance.
AgriInsurance helps farmers recover from crop and livestock losses caused by natural disasters. It provides financial security, preventing land sales and keeping farms functional.
Urbanization remains the biggest threat to Canada’s farmland. Between 2000 and 2017, southern Ontario lost over 71,660 acres.
The province continues to lose over 319 acres daily according to the 2021 Census of Agriculture.
Insurance for farmlands cannot stop urban growth, but it helps farmers handle financial shortfalls. Some policies cover lost income or legal costs for land disputes.
Insurance also supports farmers in relocating or adapting their operations when land is taken for development.
Farmers use different methods to secure their land and keep it productive. These practices include:
Farmers use drip irrigation, sprinklers, and drainage systems to keep land healthy. Some irrigation systems attached to farmland may be covered by farmland insurance.
