As we’ve mentioned before, one of the things we like most about a career as a claims adjuster is the variety: the variety of locations you can work in, the different types of claims, and the option to specialize in an area you are passionate about. Agricultural claims adjusting is not only one of these specializations, but a field that is in high demand right now.
Let’s take a look at what an agricultural claims adjuster does (and doesn’t do) and what steps to take if you want to get involved in this specialized niche of adjusting.
Agricultural Claims: Crop Claims vs Farm Claims
There are two basic types of agricultural claims: farm claims and crop claims. To be clear, there is more involved in the overall agricultural insurance industry, including the larger “agri-business” sector that includes corporate operations, manufacturing, transit, and supply chain insurance and claims. But for the purposes of this article, we’re looking at the two main types of claims as they apply to most agricultural insurance adjusters.
Crop Insurance Claims
Crop insurance adjusters focus only on crops and crop-related losses. This may include:
- Inspecting fields
- Measuring fields or storage bins
- Collecting or recording loss information
- Assessing crop damage
- Applying regulatory, company, and crop-specific claim procedures
USDA’s Loss Adjustment Manual Standards Handbook provides procedures and instructions for crop insurance loss adjustment under the federal crop insurance program.
Farm Insurance Claims
Farm insurance adjusters handle many different kinds of losses because farm and ranch insurance can include coverage for homes, farm personal property, equipment, farm structures, and liability. One claim could involve damage to farm structures, such as barns or other outbuildings. Another could involve damage to farm machinery or equipment. Another could involve liability on farm property. IRMI defines farmowners insurance as a combination of homeowners, commercial property, and commercial liability coverage.
Let’s look at the example of the Midwest Derecho that struck Iowa in August 2020.
Powerful winds came down and flattened millions of acres of corn, decimating whole crops. This damage falls under the farmer’s crop insurance policy.
But the storm’s effects extended far beyond the fields. The grain storage units and silos were heavily damaged, with many completely destroyed. The farm outbuildings for storage, equipment, animals, etc., also took heavy losses. Equipment, vehicles, fencing: these are all parts of a working farm that do not fall under the crop insurance policy and were handed by the farm adjuster.
Crop vs Farm Careers
The biggest career difference between crop adjusting and farm adjusting is that crop insurance adjusting is more specialized, focusing on crop-related claims and crop insurance loss procedures. Farm insurance adjusting, on the other hand, is broader because it can involve personal property, commercial property, farm structures, equipment, and liability.
Regardless, given the nature of most agricultural claims, it’s important to assign an adjuster who is knowledgeable about the issues and knows what they are doing when they step onto a farm or ranch.
| To read more about the differences between crop adjusting and farm adjusting, check out: Crop Insurance vs. Farm Insurance: What’s the Difference for Adjusters? |
Benefits of Specializing in Agricultural Claims
For those interested in agricultural claims, becoming a specialist in this field offers some great benefits.
Travel
We may call the Midwest “America’s Breadbasket,” but the truth is that agriculture is big business all across the U.S. And so are agricultural claims. From Florida oranges to California grapes, from Georgia peaches to Idaho potatoes, Wisconsin dairy to Washington apples: we grow something almost everywhere.
Agricultural claims give you the opportunity to experience and see the variety of America. And according to the Agricultural Claims Association, around 80% of claims still require inspection so ag adjusters spend a lot of time with boots on the ground.
Stand-Out Adjuster Resume
Most insurance carriers have at least a small piece of the agricultural claims pie. It may not be a big slice, but it’s enough to where those that specialize in this field can help separate themselves from the pack when an ag specialist is needed. If you’re a P&C adjuster, this is a niche where you can become a go-to adjuster.
Uncrowded Field (Pun intended)
To be frank, there aren’t a ton of adjusters that specialize in agricultural claims. For example, most experienced ag adjusters in the Midwest worked claims from the aforementioned derecho for months. Whether it’s an agricultural “cat” like a big storm or simple daily claims that arise, there is an opportunity for those interested in this niche to make a name for themselves in this specialized field.
One additional note worth mentioning: the lack of agricultural adjusters might be attributed to the misunderstanding that you have to have an agricultural or farming background. But that isn’t necessarily the case. Like other specializations, becoming an ag adjuster requires committing to training and education. But with dedication, even a city slicker can become a pro.
Agricultural Claims Association (ACA)
If we’ve piqued your interest, I encourage you to visit the Agricultural Claims Association. They offer a ton of resources and education for agricultural claims adjusters and those interested in the field. From training videos to case studies to mentorship, membership can help get you started down the path of becoming a true agricultural specialist.
We’ve also partnered with ACA to offer their Farm/Ranch Certified Specialist courses online. The FRCS certification is a must for those interested in farm claims. Obtaining this certification is also a great way to expand your capabilities and grab the attention of potential employers.
ACA Members receive a 37.5% discount, but anyone is welcome to take the courses. Adjusters in Texas, Delaware, Florida, and New Mexico can also get continuing education credits for these courses.
No matter where you’re in your claims adjuster journey, continuing to learn and improve yourself is key. Finding an area to specialize in is a great way to do that.
