By Andi Anderson
A recent Nationwide survey reveals that 65% of farmers do not have a formal plan to manage or reduce risks, placing their farm operations in a vulnerable position. As farming becomes more complex, experts are urging producers to think beyond current threats and consider long-term disruptions.
“Farmers and ranchers should think about what risks could impact them five years from now,” said Laramie Sandquist, Senior AVP at Nationwide Agribusiness Risk Management.
Farming involves many risks — and they’re growing. Unpredictable weather events, labor shortages, market access issues, cybersecurity threats, regulatory changes, and tax policy shifts are becoming more common and harder to manage. Without a risk plan, farms may struggle to respond effectively.
Key financial impacts reported in the survey include:
- Over 80% of farmers faced extreme weather, with $250,879 in average losses.
- 50% experienced supply chain problems, losing around $49,228 per event.
- 40% lost access to major markets, facing average losses of $149,626.
To address these risks, farmers are encouraged to take proactive steps:
- Conduct a risk assessment to identify vulnerabilities.
- Develop a detailed plan to manage and reduce those risks.
- Build resilience with the help of insurance experts and trusted advisors.
Farmers should also ask themselves important questions: Are my assets protected? Can I recover quickly from a disruption? How would long-term risks affect my goals?
Working with professionals, like a Nationwide-appointed agent, can help build a strategy that protects both day-to-day operations and long-term success. Proactive risk planning is no longer optional—it’s essential for future-ready farming.
Photo Credit: istock-dusanpetkovic
Categories: Ohio, Weather