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INSURANCE AGENCY NETWORK Blog

How Farm Owners Are Battling For Survival This 2021

6/7/2021

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​Uncertainty has filled the agricultural market. A persistent financial crisis, weather problems, and the COVID-19 pandemic affected commodities and changed the farm supply chain. One of the most pressing concerns is whether these problems will begin to inflict damage on 2021’s agricultural sector.
Loss of Agricultural Land
Land loss for farmers/farm owners is a struggle. It has limited farmers/farm owners from acquiring basic food supplies and some abandoned farming permanently. Land loss is often due to industrialization, where agricultural lands are being converted into urban needs. 

Depletion Of The Soil
One of the significant causes of soil depletion is climate change. Soil loss is worsened by intense agriculture, deforestation, and industrial activity in almost every country on the planet. Farmers are severely affected by this, for it makes land less productive for agriculture. 

Ignorance to Climate Change
Climate change affects farmers’ ability to grow crops. Besides, changes in the growing season allow farmers to adapt to unpredictable weather conditions uncontrollably. And without enough preparation, farmers will be limited to the availability of water and other farming needs. 

Oil Prices Are Extremely High
The machinery used in farming relies on oil. These machines include heavy-duty farming equipment and vehicles to transport crops. Farmers are struggling with the high fuel cost. For this reason, they use their earnings to afford fuel, which was already reduced by low prices for certain crops.

Low Agricultural Prices

Farmers face a challenging role in staying afloat on the market. Low food prices reduce farmers’ incomes. It means, what is good for the customers’ pocket, is terrible for the farmers. If this continues to happen, farmers will end up losing their land, bankrupt, or drowning in debt. 

Increasing Customer Needs and Expectation
In recent years, customers emphasized “enough food” to “healthier options.” Customers’ expectations are rising that farmers have to meet the demand for higher quality food. This expectation involves farmers shifting to an organic way of farming.

Catering to The Growing Population
As the world population increases, fewer people want to become farmers. If this trend persists, crop demand will rise, and farmers will not provide enough food for everybody. As an effect, the hunger crisis will escalate.

Conclusion
The agricultural market has been facing challenges even before the pandemic happened. The number of farmers is becoming less and less as the population keeps ballooning. These challenges are only a peek through what’s beyond farmers’ and farm owners’ daily struggle. And as consumers, it is just to acknowledge that. To better protect yourself from these challenges, it is advised that you obtain business insurance for another level of protection.

At Insurance Agency Network, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we’re here to help you out. Learn more about our products and services by calling our agency at (425) 681-0996. You can also request a free quote by CLICKING HERE.
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