A modern farm is more than just land and labour; it’s a carefully managed operation that depends on reliable equipment. Whether it’s a cooling system preserving fresh produce, or a milking machine that ensures dairy production runs smoothly, agricultural businesses rely on machinery to keep things moving.
Many farmers have invested heavily in high-tech tools to improve efficiency, boost yields, and maintain quality; others lease specialized equipment to handle specific tasks in a bid to always meet market demands. In either case, these machines aren’t just helpful; they are essential.
Like any mechanical system, though, farm equipment doesn’t last forever. Motors burn out, electrical panels fail, and critical components wear down over time. When a piece of machinery stops working, it’s not just an inconvenience but downtime, which can mean lost revenue that farmers can’t afford.
A broken irrigation system can ruin an entire crop, while a damaged feed processor can disrupt livestock care. Repairs and replacements aren’t cheap either.
That is why equipment breakdown insurance is a must-have. Unlike standard farm insurance in Alberta, which protects against external risks like fires or storms, an equipment breakdown policy covers the internal failures that can bring operations to a standstill.
In essence, farm equipment insurance enables your agricultural business to stay productive and profitable, no matter what challenges may arise.
Below, we will look at some key farm equipment, their economic and environmental benefits, common causes of breakdowns, and how farm insurance in Alberta can provide the protection you deserve.
1. Boilers and pressure vessels
Boilers and pressure vessels are the hidden workhorses of a farm, keeping things running behind the scenes. They generate heat and hot water for essential tasks while warming livestock barns in freezing Alberta winters, commonly used for heat, hot water, steam production and processing. Cookers, sterilizers and some types of cleaning equipment are other common types of pressure vessels These machines convert fuel or electricity into usable heat, ensuring farm operations stay efficient and uninterrupted.
However, they do more than just provide warmth; they also help farmers save money and reduce environmental impact. Energy-efficient boilers lower fuel costs, while modern systems use cleaner energy, which reduces emissions.
Common Causes of Breakdown
- Rust, poor water quality, and high pressure take their toll over time.
- Mechanical wear and tear, lack of maintenance, and unexpected power surges can also cause sudden breakdowns.
A malfunctioning boiler can mean expensive repairs and major disruptions, especially without equipment breakdown insurance. The right coverage, included in farm equipment insurance, makes sure that farmers aren’t left scrambling when things go wrong.
Example: Feed Yard Water Pump Breakdown
In one instance, two 50-horsepower water pumps for a cattle-feeding operation shorted due to a high-voltage surge. With equipment breakdown coverage, insurance covered $28,300 in direct damages and repair costs. Parts were obtained and shipped to the farm before any costs were incurred due to business interruption.
2. Electrical distribution
Farms in Alberta today are powered by more than just hard work, as they rely on electrical systems to keep everything running smoothly.
From irrigation pumps and milking machines to automated feeding systems and climate-controlled barns, electricity keeps modern farms efficient and productive.
The generator acts as a safety net, kicking in when the main power supply goes down. Circuit breakers protect equipment from dangerous electrical surges, thus preventing costly damage.
Strong and well-maintained cables ensure electricity flows where it’s needed, keeping operations going smoothly.
Electric panels are also the heart of a farm’s power system: they distribute electricity and control circuits for different operations. When they fail, entire sections of a farm can lose power, leading to stalled equipment and unexpected downtime.
Common Causes of Breakdown
Age is a major factor that causes breakdown. Old panels struggle to handle electrical loads, thus increasing the risk of failure. Moisture exposure is another common issue, especially in barns and storage areas, where humidity can cause rust and corrosion, leading to short circuits.
Overloaded circuits are also a frequent problem, particularly on farms that have expanded operations without upgrading their electrical systems.
When too many machines draw power from a single source, it puts excessive strain on the panel, which causes breakers to trip or wires to overheat. This increases the risk of electrical fires and sudden system breakdowns.
Without farm equipment insurance, repairing or replacing a damaged electrical system can be a tough financial setback.
Example: Dairy Farm Electrical Equipment
On one Canadian dairy farm, while new utility-owned electrical equipment was being installed, a short circuit occurred. The short sent a surge through the incoming power line, burning out several pieces of electrical equipment. The surge severely damaged a weight scale used to weigh dairy trucks.
Fortunately, their farmers policy and equipment breakdown insurance coverage provided the necessary protection, saving them from paying out of pocket for $31,800 in direct damages.
3. Mechanical equipment
Farm and ranch equipment often do the heavy lifting in modern agriculture. Such as feeding systems keep daily operations running smoothly and help farmers work faster and more efficiently.
Without these reliable mechanical tools livestock care can grind to a halt, leading to lost revenues.
That is why proactive maintenance and risk management are so important. Regular servicing helps catch small issues before they turn into expensive repairs.
However, even with the best care, unexpected failures can still happen. Thus, protection from a reliable Calgary insurance company is vital for your equipment, as the coverage ensures you can get back to work without major losses.
Common Causes of Breakdown
Machinery works long hours in tough conditions, making breakdowns almost inevitable.
- Wear and tear from constant use: This weakens mechanical parts.
- Vibration, metal fatigue, seizing: This can lead to a breakdown
- Moisture and rust can corrode metal components: This makes them brittle and prone to breaking.
Remember, ignoring small issues only makes things harder in the long run. Always inspect your machines and tools and schedule servicing often.
Example: Mechanical Issue at a Grain Mill
In the case of this grain mill, a 200-horsepower drive motor for a leg elevator burned out due to an apparent voltage surge. Some of the soft start motor controls were also damaged by the surge. The farm’s insurance provider rented a crane for repair access and paid $23,476 in direct damage and $5,000 for extra expenses.
4. Computers and electronics
Farmers use computers and smart devices to monitor crops, automate feeding, and even track weather changes. High-tech tools, like GPS, moisture sensors, and automated irrigation systems, make farming more efficient and less of a guessing game.
What happens, though, when these systems suddenly stop working? A broken GPS system can throw off plant accuracy, and a faulty climate sensor can easily lead to overwatering or drought stress.
Common Causes of Breakdown
Today’s farming technologies are quite advanced, but are not invincible to breakdowns. Dust, moisture, and extreme temperatures can mess with electronic systems, while power surges and worn-out wiring can cause sudden failures. Also, sometimes computers just decide to glitch for no good reason.
These factors make equipment breakdown insurance very important. With solid farm insurance in Alberta, farmers can fix or replace their tech without breaking the bank.
We’ve Got Your Farm Covered
At MMI Insurance, we understand that running a farm isn’t just a job, but a way of life. That’s why we don’t just sell policies; we help farmers find the right farm insurance in Alberta to protect their land, equipment, and livelihood.
As a trusted Calgary insurance company, we take the time to explain all the options for your agricultural businesses to enable you to make the best decision.
But we don’t stop at the basics. MMI Insurance offers optional coverages like Equipment Breakdown, Rock and Root Ingestion, Leased Equipment Coverage, Loss of Use, and Seed Growers Mixing because we know every farm is different, and your insurance should match your needs.
If you have more questions, we’re always here to help. Call us today at 866-222-6996, or contact us online for a free, no-obligation quote, and let’s build a policy that works for you.
